1. Generation of overdue penalty interest: overdue penalty interest will be generated if the provident fund loan is not repaid on schedule. The calculation method of overdue penalty interest is daily collection, and the interest rate on the overdue penalty interest date is 50% higher than the loan contract interest rate. Overdue penalty interest will increase the repayment burden of the loan, leading to an increase in the cost of the loan.
2. Collection by the Provident Fund Center: The Provident Fund Management Center will immediately collect overdue users by telephone or SMS. This will bring psychological pressure to users and inconvenience to work and life.
3. Impact on the handling of credit business: The loans overdue record of provident fund will be kept in the credit report of the People's Bank of China for five years, which will have a negative impact on the handling of credit business of users. During the existence of overdue records, users may encounter problems such as low credit card or other loans and high interest rates. For seriously overdue records, users may not be able to handle any credit business within 2 years after overdue.
4. Early termination of the loan contract: If the provident fund loans overdue time is too long, the provident fund center has the right to terminate the loan contract in advance according to the contract, requiring the user to settle the loan principal and interest in advance. This will bring huge repayment pressure to users. If the user can't repay in full, the remaining principal and interest will continue to generate high overdue penalty interest.
5. Facing prosecution: If the user has the repayment ability but deliberately defaults on the loan, the provident fund center can bring a lawsuit to the court after repeated reminders are invalid. Before the lawsuit, the provident fund center can also apply to the court for asset preservation and freeze the property under the user name, which brings great inconvenience to the user's life.
6. Auction of mortgaged property: If the users of the provident fund are really unable to repay the overdue loans for a long time, the provident fund center may apply to the court for auction of mortgaged property to repay the principal and interest of the mortgage loan. This will cause users to face huge economic losses and housing losses.
How to remedy loans overdue provident fund?
The remedy of provident fund in loans overdue is to pay off overdue debts as soon as possible to avoid being reported by credit information center. Loans overdue will cause the borrower to be regarded as faithless, which has a great influence on the faithless. Overdue records will affect the borrower's credit status, making him unable to apply for other loans, take public transportation, spend money, and even affect his children's education. Therefore, timely payment of overdue debts is an important measure to avoid these adverse effects.