Failure to repay the loan will have the following consequences:

1. Overdue penalty interest and late payment fees: If the loan is not repaid on time, the lending institution will usually charge overdue penalty interest and late payment fees on the unpaid amount. Late payment fees. Overdue penalty interest is calculated based on a certain percentage, and late payment fees are charged based on a certain amount. These costs can add to the burden and put a drag on a person's financial well-being.

2. Impact on personal credit record: Borrowers’ failure to repay on time will cause damage to their personal credit record. Credit history is an important indicator for financial institutions and other credit institutions to evaluate the credit worthiness of borrowers. A bad credit history can affect an individual's ability to obtain other loans, credit cards, and other financial services.

3. Collection actions and legal proceedings: Lending institutions may take collection measures, such as telephone notifications, door-to-door collections, etc. In serious cases, the lending institution has the right to recover the arrears through legal means and may apply for a court ruling to freeze the borrower's assets. Such legal proceedings may result in more serious consequences, such as the assets being auctioned or seized.

In short, failure to repay a loan will lead to an increase in overdue penalties and late fees, damage to your personal credit record, and possible collection actions and legal proceedings.

Extended information:

According to relevant Chinese laws and regulations, a loan contract is a legal act, and the borrower shall perform its loan repayment obligations in the manner, time and amount specified in the contract. Late repayment will trigger the consequences stipulated by relevant laws. According to China's Contract Law and Civil Procedure Law, lending institutions have the right to take legal collection measures and apply to court for litigation if legal conditions are met. However, specific handling methods and measures may vary from case to case and region to region. If you are faced with an overdue loan problem, it is recommended to negotiate with the lending institution in a timely manner and fulfill your repayment obligations on time to avoid possible consequences and legal proceedings.