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What happens when the loan repays the principal and does not repay the interest?
Legal analysis: Under normal circumstances, after the principal of a bank loan is paid off, the principal will naturally not generate interest, but the interest on the outstanding loan will still be calculated.

However, in one case, the unpaid interest cannot be calculated, that is, there is a repayment agreement with the bank, and both parties agree that the borrower will repay the principal first and then the interest at the agreed time, and the agreed interest will not be calculated. Then, the interest is fixed, that is, there is no need to calculate interest.

Therefore, if there is no agreement with the bank, under normal circumstances, whether you owe the principal or interest, you need to calculate interest. When repaying the loan, the borrower should treat the interest and the principal equally, and should not value the principal over the interest, let alone repay the interest.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 394 Where the debtor or a third party mortgages the property to the creditor to guarantee the performance of the debt without transferring the property, and the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties, the creditor has the right to be paid in priority for the property. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.

Article 395 The following properties that the debtor or a third party has the right to dispose of may be mortgaged: (1) Buildings and other land attachments; (2) The right to use construction land; (3) the right to use the sea area; (4) Production equipment, raw materials, semi-finished products and products; (5) Buildings, ships and aircraft under construction; (6) means of transportation; (seven) other property not prohibited by laws and administrative regulations. The mortgagor may mortgage the property listed in the preceding paragraph together.

Article 400 To establish a mortgage, the parties shall conclude a mortgage contract in writing. A mortgage contract generally includes the following clauses: (1) the type and amount of secured creditor's rights; (2) The time limit for the debtor to perform the debt; (3) The name and quantity of the mortgaged property; (4) the scope of the guarantee.

Article 419 During the limitation of action for principal creditor's rights, the mortgagee shall exercise the right of mortgage. If it does not exercise, the people's court will not protect it.