First of all, according to the regulations of the China Banking Regulatory Commission, you can enjoy interest-free treatment if you pay off the car loan in full after it is overdue. Specifically, if the car loan is overdue, but the borrower can pay off all the remaining principal and interest in one lump sum, then the bank will not charge overdue interest.
Secondly, the interest-free condition is that the principal and interest must be paid off in one lump sum. If the borrower can only repay the loan in part or in installments, the bank will still charge interest at the interest rate agreed in the contract.
To sum up, after the car loan is overdue, it can be paid off without interest. However, it should be noted that the premise of interest-free is one-time full repayment, and interest will still be charged for partial repayment or installment repayment.
Extended data:
According to the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the People's Republic of China (PRC) Contract Law, if the borrower fails to repay the loan in time, it may charge the borrower overdue interest according to law. However, if the borrower can repay the remaining principal and interest in one lump sum during the default period, the bank will usually provide interest-free preferential policies. This is because one-time repayment can reduce the risk of banks and improve the credit of lenders.
It should be noted that different banks may have different policies and regulations, so in practice, borrowers need to know and abide by the relevant regulations of banks in time.
In addition, if the borrower pays off the car loan in full after the deadline, if other expenses are involved, such as liquidated damages or late fees, it may be necessary to pay the corresponding expenses according to the contract. Therefore, when paying off the full amount, the borrower needs to consider comprehensively and communicate with the bank to avoid the occurrence of additional expenses.
In short, you can enjoy interest-free concessions if you pay off the car loan in full after it is overdue. However, we should pay attention to the specific policies and regulations of the bank to ensure communication and confirmation with the bank.