Consequences of inability to repay corporate loans: 1. If it is really unable to repay, it shall negotiate with the lending institution to extend the repayment period or repay it in installments. 2. If the lender fails to perform the judgment within the performance period after winning the case, it will apply for enforcement. 3. When compulsory execution is accepted, the lender's property, vehicles, securities and deposits will be inquired according to law. 4. 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.

Legal basis:

Article 83 of the Civil Law of People's Republic of China (PRC), the investor of a profit-making legal person shall not abuse the rights of the investor to harm the interests of the legal person or other investors. Whoever abuses the rights of the investor and causes losses to legal persons or other investors shall bear civil liability according to law. The investor of a profit-making legal person shall not abuse the independent status of the legal person and the limited liability of the investor to harm the interests of the creditors of the legal person. Whoever abuses the independent status of a legal person and the limited liability of the investor, evades debts, and seriously damages the interests of the creditors of the legal person, shall be jointly and severally liable for the debts of the legal person.

What if the corporate bank loan is not repaid?

Legal analysis: 1. If an enterprise cannot repay its debts due to the bank, the bank, as a creditor, can apply to the people for bankruptcy. 2. After the people's court accepts the enterprise bankruptcy application, it will appoint an administrator for bankruptcy liquidation. If the enterprise refuses to accept the bankruptcy ruling, it can appeal. If the other party has any objection after the payment order is issued, then you can only choose. The lawsuit of the company's arrears is applicable to the ordinary procedure of civil first instance in China.

Legal basis: Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China. If an enterprise as a legal person is unable to pay off its debts due, its assets are insufficient to pay off all its debts or it obviously lacks solvency, it shall clear up its debts in accordance with the provisions of this Law. An enterprise as a legal person may be reorganized in accordance with the provisions of this law if it has the circumstances specified in the preceding paragraph or obviously loses its solvency.

What if the company loan is not paid back to the bank?

First of all, the bank will contact the relevant enterprises by telephone to urge them to repay as soon as possible. If the enterprise defaults for a long time or even maliciously, the bank may file a lawsuit. If the loan enterprise still fails to repay the loan after the judgment, it may be enforced.

After an enterprise applies for a loan, it must repay the loan on time according to the contents agreed in the loan contract. If it is overdue, it will have a series of adverse consequences, affecting the credit of the enterprise, which is not conducive to the future production and operation of the enterprise, and is not conducive to the future financing activities.

What if the company owes a loan to the bank?

Institutions that owe bank loans but are unable to repay them 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.

Extended data:

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%.