Consequences of not repaying the loan:

1. Lending institutions will urge the maturity loans according to law. According to the loan contract and guarantee contract (mortgage or pledge contract), the loan bank will take measures such as property preservation, including freezing the deposits in all bank accounts of you and the loan guarantor and sealing up the pledged property. After the judgment is made, the property will be enforced according to law (deducting deposits, auctioning collateral, etc.). ) to repay the bank's loan losses. Specifically, it includes: loan principal, loan interest, overdue interest, penalty interest, and all litigation costs arising therefrom, and related expenses incurred when disposing of pledged property.

2. Your credit will be affected, and personal loans will also be recorded as overdue loans in the national personal credit information consultation system. If the loan bank doesn't erase your records, you may not be able to get loans from all banks in the future, your credit information will be blacklisted, your travel may be restricted, you may not be allowed to go abroad by plane, and you may not even be able to buy train tickets in the future.

3. If you provide false information or false materials when you borrow money, the lending institution may sue you for the crime of loan fraud. If the fraudulent loan is true, you may be sentenced for a crime.

Criminal Law Amendment (VI) adds new charges. Article 175 of the Criminal Law, "Whoever obtains loans, bills, letters of credit, guarantees, etc., defrauds the funds of banks or other financial institutions, and causes heavy losses to banks or other financial institutions or has other serious circumstances, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also or shall only be fined; Whoever causes particularly heavy losses to banks or other financial institutions or has other particularly serious circumstances shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and fined. "

What will happen to loans overdue?

Has the following consequences: 1. First of all, non-repayment of loans will produce bad credit records and affect other credit businesses in the future. 2. Lending institutions will charge overdue penalty interest and liquidated damages. The longer the overdue time, the more money you need to pay. 3. If the overdue period is long and the amount is large, loans can also be made by lending institutions. Those who still fail to repay the loan after the judgment will be included in the list of people who have lost their trust.

The term "loan company" is limited in China, and it is different from domestic commercial banks, finance companies, auto finance companies and trust companies in terms of definition and business scope. On August 1 1, 2009, the CBRC issued the Notice on the Management Provisions of Loan Companies (No.76 of 2009), which standardized the behavior of loan companies in China.

A loan company refers to a banking non-deposit financial institution established in rural areas by domestic commercial banks or rural cooperative banks with the approval of China Banking Regulatory Commission according to relevant laws and regulations, which provides loan services for county farmers, agriculture and rural economic development.

The loan company is a limited liability company fully funded by domestic commercial banks or rural cooperative banks.

Corporate loans can be divided into: working capital loans, fixed assets loans, credit loans, secured loans, stocks, foreign exchange, corporate certificates of deposit, gold, syndicated loans, bank acceptance bills, discount of bank acceptance bills, discount of commercial acceptance bills, discount of interest-bearing bills by buyers or agreements, domestic recourse factoring, and export tax rebate account custody loans.

Its advantages are as follows:

1. Due to the high marketing cost of banks, it is difficult for small enterprises to apply for loans directly from banks, which leads to small enterprises having to turn to financing institutions such as loan guarantee institutions for help when they have financing needs. The cost for loan guarantee institutions to select customers is relatively low, so choosing high-quality projects to recommend to cooperative banks will improve the success rate of financing and reduce the marketing cost of banks.

2. In terms of risk control of loans, banks are reluctant to put it on the Internet. One of the important reasons is that the management cost of such loans is high, but the income is not obvious. For this kind of loans, loan guarantee institutions can share the management cost of banks by optimizing the management process, eliminate the worries of banks, and form personalized service for post-loan management of microfinance.

3. After the risk is released, the advantages of loan guarantee institutions are irreplaceable. The project of bank direct loan is risky, and the disposal of collateral often takes a long time, with high litigation cost and poor liquidity. The cash compensation of guarantee institutions has greatly solved the problems that banks are difficult to deal with. Some loan guarantee institutions can compensate after loans overdue 1 month (or even three days of investment guarantee), and the bank's non-performing loans will be eliminated in time, and then the loan guarantee institutions will resolve the risks through their more flexible handling methods compared with banks.

4. The timeliness of the loan company is fast. The bank's inherent loan model and process are easy to cause a lot of time waste for SME owners, and the efficiency is difficult to guarantee; The guarantee company just embodies the flexible and changeable mode of designing special financing schemes for different enterprises.

Furthermore, the credit given by the loan company on the basis of mortgage greatly exceeds the value of the mortgaged assets.

Provide more demand funds for SMEs. Many investment guarantee companies have gained the full trust of banks in the standardized and efficient operation of post-loan management and loan risk resolution. Some cooperative banks outsource post-loan collection and loan asset disposal to guarantee companies, and the cooperation effect between the two parties is good.

What happens if you owe a bank loan?

If the loan is not repaid, the adverse consequences of the bank are as follows: 1. The borrower's credit is affected. Because the bank pays more attention to the borrower's personal credit, if the loan is not repaid, the personal credit will be affected, which will directly affect the borrower's future loans. 2. Penalty interest will increase the repayment pressure in the future. If the borrower fails to repay the loan, there will be a penalty interest with the progress of time, which will increase the repayment pressure of the borrower. 3. If loans overdue stays for a month or two, the bank will not call the borrower immediately to urge him to repay the loan. Otherwise, the bank will have a special person to communicate with the borrower. 4. If the communication fails, the borrower provides collateral as a mortgage loan, and it cannot be repaid after repeated dunning, and the collateral will be auctioned to repay the loan.

Isn't there any consequence of the loan?

The consequences of not repaying the loan at maturity are as follows:

1. First of all, the loan will not generate bad credit records, which will affect other credit businesses in the future.

2. Lending institutions will charge overdue penalty interest and liquidated damages. The longer the overdue time, the more money you need to pay.

3. If the overdue period is long and the amount is large, loans can also be made by lending institutions. Those who still fail to repay the loan after the judgment will be included in the "list of people who have lost their trust" and cannot take high-speed trains or planes.

Extended data:

How can we negotiate successfully with the bank?

Users who want to negotiate with the bank for successful repayment must take the initiative to contact the bank after loans overdue to show that they are not maliciously overdue. After that, the user submits the repayment application through negotiation. During this period, it is best to submit some supporting materials, such as unemployment certificate, minimum living allowance, medical records of major cases, disability certificate, etc. , which can help users negotiate successfully.

The user is not maliciously overdue, and there are sufficient proof materials to prove that his repayment ability is insufficient. The bank will consider it as appropriate, and the probability of successful negotiation will increase. User loans overdue doesn't repay the loan, and subsequent banks need to deal with bad debts, so all losses need to be borne by banks. Users are willing to repay, but they just need to postpone the repayment time, and the bank will definitely be willing to give convenience.

Of course, users are often overdue or have been listed as risk customers by banks. At this time, it is highly probable that the application for repayment by agreement will fail. Even if the user is fully prepared for the negotiation, the final negotiation failure is possible.

What will happen if the loan is not available?

Yes

"What are the consequences of the loan?

1. If the lending institution or bank fails to perform the judgment within the performance period after winning the case, it will apply for enforcement.

2. When compulsory execution is accepted, the lender's property, vehicles, securities and deposits will be inquired according to law.

3. If the lender has no property to enforce, refuses to perform the effective judgment, overdue repayment and other negative information will be recorded in the personal credit report, and will be restricted from high consumption and entry and exit, and may even be punished by judicial custody.

4. Refusing to execute a judgment or ruling is suspected of refusing to execute a judgment or ruling.

Second, if a banking institution owes a bank loan, it will take a series of measures, as follows:

1. The bank will call the borrower to collect debts.

2. If the borrower still fails to repay the debt after debt collection, there will be a certain penalty interest and a bad credit record for himself.

3. If the borrower still fails to repay the loan, the bank will send relevant staff to collect it in person.

4. If the borrower fails to repay the loan until the end, the bank will take legal measures to safeguard its own rights and interests. If the borrower applies for a mortgage loan, the collateral will be auctioned, and then the proceeds from the auction will be used to repay the loan.

Third, overdue loans

According to the relevant provisions of the Contract Law, the borrower fails to repay the loan within the time limit stipulated in the loan contract, which is a breach of contract and should bear the liability for breach of contract. The ways to bear the liability for breach of contract include returning the loan principal, paying the interest during the loan period agreed in the contract and paying the interest of loans overdue.

Repaying the loan principal and paying interest within the loan period agreed in the contract will generally not cause disputes because the parties have clearly agreed in the loan contract; There is a great dispute between the parties about the interest on overdue loans, and the standards applied by judges in hearing such cases are not uniform, which affects the authority of the law. Lawyers believe that it is necessary to integrate this issue so that everyone's understanding can be unified.

The funds invested by banks in such loans may or may not be recovered in the future. There is a great possibility of losses, and commercial banks usually have to impose a penalty interest on such loans. Overdue loans are the problem assets of banks. Commercial banks should maintain a high capital reserve, and the reserve ratio is generally 50%. "