Lending institutions can charge up to 50% penalty interest. Different lending institutions have different regulations on overdue loan penalties. Generally, 30%-50% is added to the loan interest rate as overdue penalty.

Can I still apply for a bank loan if I have an overdue credit card record?

1. If a credit card is overdue for more than six times within two years, you cannot apply for a provident fund loan

Personal credit card or loan is overdue for three consecutive months, or is overdue for more than six times within two years. In this case, you cannot apply for a provident fund loan. At present, when banks or provident funds handle credit business, they mainly rely on the credit record of the borrower in the past two years. Therefore, cardholders who plan to apply for provident fund loans to buy a house should not use credit cards easily for consumption, and must ensure timely repayment.

2. If the personal credit report is bad, the commercial loan interest rate will be raised

If some people who want to borrow money to buy a house have had many overdue credit cards, resulting in a bad personal credit report. Then you definitely cannot apply for a provident fund loan, and you can consider using a commercial loan. However, due to the impact of past bad credit records, most banks will increase the base interest rate by at least 10%. Of course, if your overdue payments are serious and frequent, the bank will not approve your loan application.

How many times are the loans overdue?

Currently, when major banks review an applicant's credit status, they use six or more overdue repayments within two years as a criterion for whether there is a bad credit record. For applicants who are "three in a row and six in a row", that is, they are overdue three times in a row within two years or are overdue six times or more in total, the loan will not be granted. The regulations of each bank are as follows:

1. Industrial and Commercial Bank of China, if the loan application is overdue 6 times or more in the past 24 months, the loan application will not be approved.

2. China Construction Bank will not grant a loan if the loan principal or interest is in arrears for more than 3 consecutive periods (inclusive) or a total of 6 periods (inclusive).

3. Agricultural Bank of China, if there are more than 6 overdue loans or more than 3 consecutive overdue loans in the past two years, you will not be able to apply for a loan.

The same is true for credit card applications, but banks will not only review the number of overdue payments, but also the reasons for the overdue payments. If the overdue payment is due to bank reasons, or if proof of non-malicious overdue payment can be provided, the bank will also be lenient.

Legal basis: Article 1,260 of the "People's Republic of China and Civil Code"

A loan contract between natural persons does not stipulate the payment of interest or the stipulation is unclear , it is deemed that no interest is paid. If a loan contract between natural persons stipulates the payment of interest, the interest rate of the loan shall not violate the relevant national regulations on restrictions on loan interest rates.