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.

The second point: the 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.

The third point: facing prosecution

In loans overdue for a month or two, the bank will not sue immediately. Generally, it will call to urge the borrower to repay the loan first. If it fails, the bank will have a special person to communicate with the borrower.

The fourth point: collateral auction.

If the communication fails, the borrower provides collateral as a mortgage loan, and the loan cannot be repaid after repeated dunning, then the mortgage will be auctioned to repay the loan.

Extended data:

According to the different situation in loans overdue, there are different solutions, as follows:

Late arrival. Some borrowers forget the repayment time. In this case, they need to get in touch with the bank in time after making up the repayment amount. After the borrower is overdue, most banks will not immediately show it on the personal credit report. Some banks will have a few days' grace, and some will report to the central bank's credit information center the next day.

Malicious overdue for more than 90 days. After paying off the loan, the borrower will continue to maintain a good credit record, and if he receives the credit report, he will pay off the penalty interest. Lenders with credit cards should continue to maintain good consumption habits. Generally speaking, they will be eliminated within five years.

Overdue due to unemployment, serious illness, going abroad, etc. Take the initiative to contact the bank and issue a "non-malicious overdue certificate".

Overdue due to "fake loan". Take the initiative to contact the bank to explain the situation and raise objections. Generally, it can be eliminated within 15 working days.