If there is no fraud in the process of obtaining the loan, the use is legal, but there is no repayment ability, then there is a great chance of bearing civil liability according to the contract and the law. Borrowers should go to the bank to express their sincerity in repaying money and their current inability to repay it. Spread out your financial situation and communicate with the bank about debt restructuring. Or extend the repayment period, or provide additional collateral, or bear the late payment fee, or raise funds to repay the principal and interest, late payment fee and expenses immediately and in full. We should try our best to reach a settlement agreement and reduce additional responsibilities. If the negotiation fails, it is very likely that the bank will sue. During the litigation, the bank can also apply for property preservation, freeze the borrower's bank account and seal up real estate such as vehicles. The impact is very far-reaching. After getting the judgment, the one-time repayment period is very short. If the effective judgment cannot be fulfilled, the bank will enforce the collateral, such as the mortgaged property by judicial auction.
In addition, loans overdue will leave a bad personal credit record. If it can be understood by banks, we can consider asking banks to cancel bad credit records. If it cannot be revoked, the bad record will be kept for 5 years, which will affect the borrower's financing possibility in the future.
If there are false elements in the process of obtaining the loan, or the loan is misappropriated or illegally used, there is a risk of criminal responsibility. For example, the crime of loan fraud stipulated in article 193 of the criminal law. If the amount exceeds 10000, it is huge.
Original criminal law:
Under any of the following circumstances, whoever defrauds a bank or other financial institution for the purpose of illegal possession, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan or confiscated property:
(a) fabricating false reasons such as introducing funds and projects;
(two) the use of false economic contracts;
(3) using false documents;
(four) the use of false proof of property rights as a guarantee or repeated guarantee beyond the value of collateral;
(5) obtaining loans by other means.