Legal analysis: it depends on how the contract is agreed. If the contract is not fulfilled, it can be solved through court prosecution. Loans overdue repayment will generate penalty interest. How to calculate the penalty interest of unsecured loans? First of all, the penalty interest standards of different lending institutions are not necessarily the same, and the loan contract shall prevail. The central bank's regulations on penalty interest require that the penalty interest of financial institutions shall not exceed 150% of the agreed loan interest rate. In fact, the penalty interest of most lending institutions is charged at 150% of the loan interest rate, especially unsecured loans; Secondly, overdue penalty interest is not compound interest. During the calculation of default interest, loan interest can no longer be calculated. Penalty interest can no longer be calculated by interest. (The penalty interest/late payment fee of some banks' credit cards is calculated according to compound interest); When the borrower repays, the repayment sequence should be: overdue penalty interest, interest and principal.

Legal basis: Article 3 of the Notice of the People's Bank of China on Issues Concerning the Interest Rate of RMB Loans (Loans that the Borrower fails to repay on the date agreed in the Contract) changes the default interest rate from the current daily interest rate of 2. 1% to 30%-50% higher than the loan interest rate agreed in the loan contract; If the borrower fails to use the loan as agreed in the contract, the penalty interest rate will be changed from the current daily interest rate of five ten thousandths to 50%- 100% of the loan interest rate agreed in the loan contract.

For loans that are overdue or not used according to the purpose agreed in the contract, interest will be charged at the default interest rate from the date when they are used in loans overdue or not according to the purpose agreed in the contract until the loan principal and interest are fully paid off. For the interest that cannot be paid on time, compound interest shall be calculated at the penalty interest rate.