1. Notify the borrower to pay off the loan in one lump sum and collect overdue interest and liquidated damages as agreed in the contract.
2. Cancel the borrower's loan qualification and require the borrower to repay all the loan principal and interest in one lump sum within the specified time.
3. The bank will pursue the borrower's liability for breach of contract through legal channels, including but not limited to freezing the borrower's bank account, sealing up the collateral, and enforcing it.
4. The bank will report the borrower's default information to the credit reporting agency, which will affect the borrower's credit record.
In short, if the borrower uses the loan illegally, the bank will take a series of measures to safeguard its own rights and interests, which will also have a negative impact on the borrower's credit record. Therefore, it is suggested that the borrower should abide by the contract when using the loan and use the loan funds reasonably to avoid the occurrence of default events.