The consequences of loans overdue:
1, resulting in penalty interest. Usually, when the loan is not paid in full on the interest payment date, the bank will temporarily list it as a collection note and call the borrower to remind him to repay it within 7 days. Make up the loan within 7 days, and the bank will not charge any late fees. However, if the loan is not repaid for more than 7 days, the bank will classify the loan as "collection" and "deferred repayment", and then it must pay a late fee or penalty interest. The penalty interest of each lending institution is different. For example, Citibank's penalty interest rate is 50% higher than the original interest rate;
2. Pull into the blacklist and record it in the bad credit file. The name of the lender will appear in the internal system of the bank the day after the deadline, and the credit report will inevitably leave a bad record. If you don't pay for more than three months, it will be very serious. The borrower will be marked with a bad credit record in the joint credit information center, commonly known as the "blacklist", which may be kept for more than 3 years;
3, affect future loans and credit cards. As long as you enter the blacklist, mortgages and car loans will be affected. Penalty interest is only a loss of money, and bad credit record is a loss of intangible assets, and its influence cannot be compensated by money;
4. You can't enjoy preferential loans. For mortgage loans, if there are many overdue repayment records in the past loan records, even if they are not blacklisted, they may not be able to obtain the preferential interest rate of bank mortgage smoothly, or even be refused a new mortgage, except for the penalty interest for overdue repayment.
Legal basis: Article 676 of the Civil Code of People's Republic of China (PRC).
If the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant state regulations.
Article 678
The borrower may apply to the lender for extension before the repayment period expires; If the lender agrees, it can be extended.
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.