Article 207 of the Contract Law stipulates: "If the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant state regulations".

The repealed "Economic Contract Law" and "Regulations on Loan Contracts" have clearly stipulated that overdue loans should be penalized. 1995 notice of the people's bank of China on interest-bearing measures after adjusting the loan interest rate (hereinafter referred to as the notice) and 1999 regulations on the administration of RMB interest rate (hereinafter referred to as the regulations) have detailed regulations on interest-bearing of overdue loans, and the Supreme People's Court also has regulations on such issues.

2, the impact on enterprises:

Affect the next loan business application of the enterprise.

Extended data:

Relevant regulations

The accounting period of interest receivable of financial enterprises is adjusted from the original 180 days to 90 days. Interest receivable overdue within 90 days (including 90 days) shall continue to be included in the current profit and loss from the interest settlement date.

If the loan interest is overdue for more than 90 days, regardless of whether the loan principal is overdue or not, the interest receivable is not included in the current profit and loss, but is included in the profit and loss when it is actually recovered.

For the interest receivable that has been included in the profit and loss, if the loan principal or interest receivable is overdue for more than 90 days (excluding 90 days), the interest income will be offset accordingly.

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