Loans do not have the following consequences:

1. Encounter penalty interest and liquidated damages.

If you do not repay the loan, the first thing you will encounter is high penalty interest. Some financial institutions will also require you to pay a liquidated penalty on top of the penalty interest. These fees add up to a large amount of money. expenses. ?

2. Credit damage.

If you borrow money from the bank and fail to repay it overdue, your personal credit report will be stained. It will be even more difficult to apply for a credit card or loan in the future. Even for small loan companies, which are not included in the credit report, there is a unique "blacklist" system in the circle. If one company does not repay, it will be difficult to approve other companies' loans.

3. Collection by various means.

Both banks and small loan companies have their own collection systems. The low-level ones will send you text messages and call you to collect debts, while the more severe ones will even have debt collectors close to you 24 hours a day, seriously disrupting your work and life.

4. If you are sued, your assets may be sealed.

Financial institutions will also arm themselves with laws. If the debt is not repaid, and the amount is relatively large, you will be prosecuted. Once the court pronounces its verdict, you must implement the "repayment ruling" even if you are reluctant. Otherwise, the court will seize the property under your name in accordance with the law and use the proceeds from the auction to repay the debt.

Extended information:

Repayment method

(1) Equal principal and interest repayment:

That is, the sum of the principal and interest of the loan and a method of repaying in equal monthly installments. Housing provident fund loans and commercial personal housing loans from most banks adopt this method. In this way, the monthly repayment amount is the same;

(2) Equal principal repayment:

That is, the borrower will evenly distribute the loan amount to each period during the entire repayment period. (monthly) repayment, and at the same time pay off the loan interest from the previous trading day to this repayment date. In this way, the monthly repayment amount decreases month by month;

(3) Pay monthly interest and repay the principal when due:

That is, the borrower repays the loan in one lump sum on the loan maturity date The principal of the loan [applicable to loans with a term of less than one year (including one year)], the interest on the loan is calculated on a daily basis, and the interest is returned on a monthly basis;

(4) Repay part of the loan in advance:

That is, the borrower applies to the bank and can repay part of the loan amount in advance. The general amount is 10,000 or an integral multiple of 10,000. After repayment, the loan bank will issue a new repayment plan, including the repayment amount and repayment period. has changed, but the repayment method remains unchanged, and the new repayment period shall not exceed the original loan period

(5) Repay the entire loan in advance:

That is, the borrower If you apply to the bank, you can repay the entire loan amount in advance. After repayment, the lending bank will terminate the borrower's loan and handle the corresponding cancellation procedures.

(6) Borrow and repay at any time:

The interest after borrowing is calculated on a daily basis, and one day is used to calculate the interest.

You can settle the payment in one go at any time without penalty

Baidu Encyclopedia - Loans