1. Generate penalty interest.
Although the policy of each lending institution is different, if the credit is loans overdue, the lending institution will first collect the loan to remind the borrower to repay, and the interest rate will rise as a daily penalty.
Penalty interest varies from lending institution to lending institution. For example, Citibank will charge 50% interest on the basis of the original interest rate, and some small loan companies may charge more liquidated damages. This means that you borrowed an estimated 65,438+100000 yuan, but if you don't pay it back for more than three months, you may end up paying interest and late fees of 65,438+100000 yuan.
2. Have a bad credit record, which will affect future loans and credit card processing.
Every day after you are overdue, your name will appear in the internal system of the bank at the same time, and then the president and risk control will see it. After the deadline, the credit report will inevitably leave a bad record. Once you leave, it may last for three to seven years. If you want to borrow from other banks in the future, you may not be able to apply easily because of bad credit.
If the overdue situation is serious, the mortgage and car loan will be affected in the future. Penalty interest is only the loss of money, while bad credit records are the loss of intangible assets, and the impact is irreparable by money.
3. You can't enjoy preferential loans or even apply for loans.
When many people apply for a mortgage again, they find that they have left too many overdue repayment records on the old mortgage because of carelessness. In addition to the penalty interest for overdue mortgage repayment, they may not be able to obtain the preferential interest rate of bank mortgage smoothly. What's more, it is impossible to apply for a mortgage.
4. Close the blacklist, children can't go to key schools.
For some "Lao Lai" who deliberately delay bank debts, they will be blacklisted. So that you can't fly, high-speed rail, accommodation, etc. ; More seriously, children will not be able to go to key schools; There will be more punishments in the future, so it can be said that life is hard.
5. Affect personal career.
For students who have been studying in loans overdue for more than 90 consecutive days and the circumstances are serious, the bank or school will publish the ID number and overdue information in the media, or notify the work unit. Banks will sue those who owe money maliciously or intentionally. If it is overdue for 90 days in a row and can be remedied in time and repaid on time, the credit level will not be greatly affected.
6. The bank sent a lawyer's letter to the court for prosecution.
If you don't pay the bill for more than 3 months, it will be very serious! If the loan bank collects the loan according to law, it will bring a lawsuit to the court according to the loan contract and guarantee contract (mortgage or pledge contract), and the court will take measures such as property preservation, including freezing the deposits in all bank accounts of the lender and loan guarantor and sealing up the pledged property.
7. After the judgment comes down, it will be enforced.
After the judgment is made, the property will be enforced according to law (deducting deposits, auctioning collateral, etc.). ) to repay the bank's loan losses. Specifically, it includes: loan principal, loan interest, overdue interest, penalty interest, and all litigation costs arising therefrom, and related expenses incurred when disposing of pledged property.
8. Those with serious circumstances will be punished by law.
If you have the ability to refuse to implement the effective legal documents, you will be punished by law. When the debtor is unable to repay, the guarantor shall be liable for repayment.