If the small amount of loans overdue is not paid back, the micro-loan agency will collect liquidated damages and penalty interest. Secondly, the agency will upload the overdue records to the credit report, which will affect the credit of the borrower. Finally, if it is overdue for a long time, the borrower will be sued by the lending institution and the law will accept it.

Specific steps

1. The borrower shall apply to the bank outlets offering small loans. When applying, the borrower should bring ID card, proof of address, proof of stable income source and other related materials, and if it is a merchant, it should also bring a business license;

2. After receiving the lender's application, the bank will review the lender;

3. Sign a loan contract with the bank through the examination and approval of the bank;

4. The bank lent money, and the lender successfully got the loan.

The above four steps are the general process of bank microfinance. Different banks may have slightly different provisions on microfinance, and the materials to be submitted are also different. In order to avoid loan risks, some banks will require lenders to meet certain conditions, such as age, income level and repayment ability.

Extended data:

First, the basic knowledge of interest calculation

(1) The interest rate conversion formula for RMB business is (note: common for deposits and loans):

1, daily interest rate (0/000)= annual interest rate (%)÷360= monthly interest rate (‰)÷30.

2. Monthly interest rate (‰) = annual interest rate (%)÷ 12.

(two) banks can use the product interest method and the transaction interest method to calculate interest:

1. Accumulate the account balance daily according to the actual number of days, and multiply the accumulated product by the daily interest rate to calculate the interest. The interest-bearing formula is:

Interest = cumulative interest-bearing product × daily interest rate, where cumulative interest-bearing product = total daily balance.

2. Transaction-by-transaction interest calculation method calculates interest one by one according to the preset interest calculation formula: interest = principal × interest rate × loan term, with three details:

If the interest-bearing period is a whole year (month), the interest-bearing formula is:

① Interest = principal × year (month )× year (month) interest rate

If the interest-bearing period is a whole year (month) and days, the interest-bearing formula is:

② Interest = principal × annual (monthly) × annual (monthly) interest rate+principal × odd days × daily interest rate.

At the same time, banks can choose to convert all interest-bearing periods into actual days to calculate interest, that is, 365 days per year (366 days in leap years), and each month is the actual number of days in the Gregorian calendar of the current month. The interest-bearing formula is as follows:

③ Interest = principal × actual days × daily interest rate

These three formulas are essentially the same, but because the interest rate conversion is only 360 days a year, when calculating the actual daily interest rate, it will be calculated as 365 days a year, and the result will be slightly biased. Which formula is used specifically, the central bank gives financial institutions the right to choose independently. Therefore, the parties and financial institutions can agree on this in the contract.

(3) Compound interest: Compound interest means adding interest at a certain interest rate. According to the regulations of the central bank, if the borrower fails to repay the interest at the time agreed in the contract, it will be charged with compound interest.

(4) Penalty interest: If the lender fails to repay the bank loan within the prescribed time limit, the penalty interest paid by the bank to the defaulter according to the contract signed with the parties is called bank penalty interest.

(V) loans overdue liquidated damages: penalties for the defaulting party with the same nature as penalty interest.

(six) the formulation and filing of interest calculation methods

The interest-bearing settlement rules and methods for deposit and loan business formulated by national commercial banks as legal persons shall be reported to the head office of the People's Bank of China for the record, and the customers shall be informed.

Regional commercial banks and urban credit cooperatives should be reported to the branches of the People's Bank of China and the central branch of the provincial capital for the record, and inform customers; County rural credit cooperatives as legal persons may, according to the actual situation of the county rural credit cooperatives, formulate the rules for interest calculation and settlement and the interest-bearing measures for deposit and loan business, and report them to the branch of the People's Bank of China and the central branch of the provincial capital for the record, and the rural credit cooperatives as legal persons shall notify the customers.

Baidu encyclopedia-micro-credit loans

What if the small loan is not repaid?

Consequences of non-repayment of small loans:

1. If it is really unable to repay, it shall negotiate with the credit company to extend the repayment period or return it in installments.

2. If the credit company fails to perform the court's judgment within the performance period after suing the court and winning the case, it will apply to the court for enforcement.

3. When accepting enforcement, the court will inquire about the real estate, vehicles, securities and deposits in the name of the lender according to law.

4. If the lender refuses to perform the effective judgment of the court because there is no enforceable property under his name, negative information such as overdue repayment will be recorded in the personal credit report, which will restrict high consumption and entry and exit, and may even lead to judicial custody.

5. Refusing to execute a judgment or ruling is suspected of refusing to execute a judgment or ruling.

Legal basis: the crime of refusing to execute a judgment or written order in Article 313 of the Criminal Law of People's Republic of China (PRC). Whoever refuses to execute the judgment or ruling of the people's court, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or a fine.

What will happen to loans overdue?

The consequences of not paying back a small amount of loans overdue are as follows:

1, affecting the borrower's credit index.

If you don't repay the small loan on time, it will be a stain on your credit. If there is a stain, you certainly can't borrow money from other loan companies. Not only that, if you handle other loan business or other real-name registration system registration business, it will also have an impact.

2. The pressure to repay overdue fees has increased.

If you borrow a small loan, there is a certain period. If you don't pay it back within this period, there will be overdue fees or liquidated damages. Therefore, when you repay later, you should not only repay the principal interest, but also add liquidated damages, which undoubtedly increases your repayment pressure. The gain is outweighed by the loss.

3. The prosecution leads to the closure of assets.

If you don't repay the small loan on time, it's easy to say that the amount is small, but if the amount is large, the loan company may sue you and seal up your assets, so all your funds will be frozen, which will have an impact on your life.

4. If the circumstances are serious, it will violate the law.

Generally speaking, small loans are not civil disputes and will not be litigated. However, if the parties refuse to implement it, it will rise to the level of illegality, and criminal responsibility will be investigated for bad behavior.

5. What about small loans from banks? Will be sued by the bank and included in the "blacklist" of credit information.

First of all, if the borrower fails to repay the loan to the bank before the repayment date, the bank will urge the borrower by SMS, telephone and email. If the borrower still doesn't respond, then the bank will send relevant staff to collect debts.

6. Secondly, if the borrower is still tough and insists on not repaying the loan, the bank will hand over the borrower's relevant loan information to the relevant legal department, hoping to solve this matter through legal channels.

7. Finally, the staff of the relevant legal department will contact the borrower to negotiate repayment. If the borrower still has no money to repay, the Ministry of Justice will go through judicial procedures and the court will file a case for trial. If the borrower applies for a mortgage loan, the court will auction the items mortgaged by the borrower to make up for the arrears.

8. If the borrower can't repay the loan on time, evasion can't solve the problem. It is better to apply to the bank for a deferred repayment period before the repayment date. If the borrower is in special circumstances, the bank will generally accept it.