If it is not returned, it will bring the following consequences:
1. has a bad credit record, which will affect the application for loans and credit cards in the future;
2. There will be penalty interest and liquidated damages in loans overdue, so the arrears to be paid will be more and more;
3. If the borrower fails to repay the loan for three consecutive months and refuses to pay attention to it after repeated collection by the lending institution, the lending institution will use the law to safeguard its own rights and interests and apply for auction of mortgaged vehicles to offset the arrears.
Consequences of loan extension:
1, penalty interest
When signing a loan contract, some regulations will generally be made for loans overdue, and default interest will generally occur if the loan contract is overdue. The amount of penalty interest and the interest generated are different from those of financial institutions.
2. Credit stain
Once in loans overdue, the bank will report its overdue records to the central bank's credit information system. Once the record is generated, it will leave a stain on the personal credit report. This small stain will form a great resistance to your future loan and credit card application;
3. Can't enjoy the preferential loan interest rate.
When you apply for a loan from a bank, the loan interest rate will fluctuate to varying degrees, and high-quality customers can usually get the lowest loan interest rate. Users with loans overdue records, even if they get a loan application, can hardly enjoy preferential interest rates.
Legal basis:
Article 394 of the Civil Code of People's Republic of China (PRC)
In order to ensure the performance of the debt, if the debtor or a third party does not transfer the possession of the property and mortgages the property to the creditor, if the debtor fails to perform the due debt or realize the mortgage according to the agreement of the parties, the creditor has the right to be compensated in priority for the property. The debtor or the third party specified in paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.
Article 676
If the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant state regulations.