Penalty interest = amount owed * daily interest rate * penalty interest rate * overdue days. Penalty interest usually rises by 30%-50% on the basis of the original loan interest rate. The specific algorithm depends on the different situation of each case. In addition to overdue interest, penalty interest also includes misappropriation.

Overdue interest is usually calculated in days, and the penalty interest rate multiplied by the number of overdue days is overdue interest. The specific default interest rate will be stated in the loan contract.

The default interest rate of overdue loans (loans that the borrower fails to repay on the date agreed in the contract) is changed from 2. 1% per day agreed in the loan contract to 30%-50%, and the default interest rate of borrowers who fail to use the loans as agreed in the contract is changed from 5% per day to 50%- 100%.

Extended data:

Precautions:

For loans overdue's behavior in a short time, the lending institution will regard it as non-malicious overdue. As long as the lender pays off all the arrears immediately, it will not pursue the lender's responsibility and will not submit a credit report.

For long-term overdue behavior, lending institutions will classify loans overdue as malicious overdue and loans as bad debts. At this time, the lending institution will take various ways such as door-to-door collection and company collection to collect the arrears, and even take the debtor to court.

Overdue for more than 90 days will be regarded as malicious, and legal measures will be taken if it exceeds 120 days. Therefore, it is very dangerous for loans overdue to exceed 120 days, and it will be sued by the bank.

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