1. What to do if the subsidized loan cannot be repaid

1. If you really do not have the ability to repay, try to negotiate and communicate with the lending institution to see if you can apply for a loan. Extension or installment repayment;

2. When borrowing money from relatives and friends, try not to repay overdue, otherwise it will affect future borrowings;

3. Suggestions for individuals with assets in their name Assets can be mortgaged to complete repayments.

2. What are the consequences of non-repayment of subsidized loans

1. High penalty interest

Subsidized loans are actually interest-free loans. After the borrower borrows the loan, The interest is borne by the state's interest subsidy. Once it is overdue, a relatively high penalty interest will be incurred, and it is calculated with compound interest. The longer the overdue period, the more the amount has to be paid.

2. Credit damage and collections

After the loan is overdue, a bad record will be left on the borrower's personal credit report, making it difficult to apply for credit from other banks in the future. Business handling. And they will also be blacklisted by the Postal Bank and suffer long-term collection.

As a financial institution, banks will definitely find ways to recover the principal and interest after the borrower's loan is overdue. If the borrower is overdue for less than 2 months, banks will often remind them of repayment via phone calls and text messages. Once the borrower is overdue for more than 3 months, the bank will come to collect the loan.

3. Being sued

The loan amount of subsidized loans is generally relatively large. If the borrower fails to repay for a long time, the bank will basically choose to sue the borrower. After being sued, the borrower will be enforced by the court. If the borrower still returns the loan, he may be listed as a defaulter.

After becoming a defaulter, not only will the borrower be subject to many restrictions and his property will be frozen, but his family will also be affected.

3. What are the guarantor’s responsibilities if the loan is not repaid?

1. General guaranty liability

The liability paid is that if the debtor cannot repay the debt when due When a debt is due, the guarantor must bear the responsibility for it, that is, pay off the debt when it becomes due.

2. Joint and several guarantee liability

The liability paid is that when the debt reaches the repayment period, the creditor has the right to require the debtor or guarantor to repay the debt.

When the guarantee is a general guarantee, the guarantor has the right to sue first, that is, the guarantor has the right to reject the creditor's request for repayment before the creditor applies for enforcement against the debtor's property or fails to enforce the security interest. Joint guarantors have no such right.

Subsidized loans are interest-free loans, and the interest on this loan is also borne by the state. If you cannot repay the loan, you need to negotiate with the lending institution in a timely manner to try to extend your repayment period. As long as you negotiate well There will be no corresponding interest, but if I ignore it and fail to repay after the due date, not only will there be penalty interest, but I will also face the risk of being sued.