First of all, if rural credit cooperatives apply for loans and fail to repay them, they will incur penalty interest. The penalty interest is calculated according to compound interest, that is to say, the longer the overdue time, the higher the penalty interest the borrower needs to pay. For those with weak repayment ability, further penalty interest will increase their repayment pressure.
Secondly, if the loan of the rural credit cooperative is not repaid, after the credit cooperative has repeatedly urged repayment, the credit cooperative staff can sue the borrower to the court and let the court decide to auction the borrower's assets for repayment. Whether it is a mortgage loan or a credit loan, this can be implemented.
Moreover, if you apply for a credit union loan and don't pay it back, your personal credit will be affected. The longer the time, the higher the amount and the greater the impact. In this way, it is very difficult for borrowers to refinance in the future. Lenders may not provide mortgage loans because borrowers have poor credit.
Friendly reminder to all friends who have already handled loan business in rural credit cooperatives that they must repay the loan on time after obtaining the loan to avoid bringing adverse effects and consequences to themselves.