1, penalty interest and liquidated damages. If the loan is not repaid, the first thing you encounter is a high penalty interest. Some financial institutions need you to pay liquidated damages on the basis of penalty interest. These expenses add up to a lot of money.

2. Credit damage. If you borrow money from the bank and fail to pay it back within the time limit, your personal credit report will be stained, and it will be more difficult to apply for credit cards and loans in the future. Even small loan companies are not included in the credit report, and there is a "blacklist" system in the circle. If a company does not pay back, it will be difficult to approve other loans.

3. Collect in various ways. Banks and small loan companies have their own collection systems. Novices will send you text messages and call you to collect money. In serious cases, there will even be a collection staff pressing you around the clock, which will seriously disrupt your work and life.

If sued, the assets may be confiscated. Financial institutions will also arm themselves with laws. If you don't pay the arrears, you will be prosecuted if the amount is relatively large. Once the court makes a verdict, even if you are reluctant, you must execute the "repayment ruling". Otherwise, the court will seal up the property under your name according to law and repay the arrears with the proceeds from the auction.

If the circumstances are serious, you will go to jail. Generally speaking, such incidents as non-repayment of loans are civil disputes and will not rise to the criminal level. However, if the borrower refuses to implement it, it will be considered as a deadbeat and would rather run away than pay back the money. If the circumstances are very bad, the court will also investigate the criminal responsibility of the borrower, and if it is too serious, it will go to jail.

Extended data:

Do small loan companies apply for credit reporting?

If the small loan company has a cooperative relationship with the People's Bank of China, and the small loan company has a relevant financial license, then the loan application in the small loan company is successful, and the loan record is the credit information at the meeting. However, some private small loan companies usually do not cooperate with the central bank and are private companies. There is no financial license at this time. When such small loan companies apply for loans, there will be no credit history.

When users apply for loans, they must pay attention to choosing formal loans, which are more secure and easier for users to safeguard their legitimate rights and interests.