Interest on overdue loans: refers to the penalty interest generated by loans overdue, specifically the overdue penalty interest generated by the lender's failure to repay the loan as agreed in the contract. The general operation is to increase the penalty interest by 30%-50% on the basis of the original loan interest rate, and the specific algorithm depends on the different circumstances of each case.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 667 A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.

Article 668 A loan contract shall be in written form, unless otherwise agreed between natural persons. The contents of a loan contract generally include terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.

Article 669 When concluding a loan contract, the borrower shall, at the request of the lender, provide the true information about the business activities and financial status related to the loan.