Borrowing money does not have the following consequences.

1. Pay more overdue penalty interest

Starting from the first day of overdue, the overdue amount will be charged at a penalty interest rate. The penalty interest rate is usually the normal interest rate. 1.5 times. The longer the loan is not repaid, the greater the overdue penalty interest, which adds up to a lot of fees.

2. Damage to personal credit

If the repayment has not been made by 24:00 on the repayment date, the lending institution will truthfully report the overdue situation to the central bank's credit report in accordance with relevant regulatory requirements. Center, which will be displayed on the personal credit report for a long time, causing personal credit damage. If the loan is not repaid, you will be unable to apply for other loans.

3. Continue to face various collections

Including mobile phone text message collection, phone collection, door-to-door collection, etc. There will be a set of collection procedures to press the borrower step by step until the debt is overdue. Payment settlement is a continuous and cyclical process, which will inevitably have a great impact on your work, life and psychological state in the long run.

4. Small-amount loans cannot continue to borrow money

The small-amount loans that were previously applied for have been borrowed and will not be repaid. In order to stop the loss in time, the lending institution will definitely cancel the borrower's loan. The qualifications and remaining borrowing limit make it impossible to continue borrowing money and can only repay it. Even if the debt is paid off, it may not be able to continue to use it in the future.

5. Litigation by the lending institution

If overdue penalty interest, credit damage, continuous collections, etc. cannot make the borrower repay the money, then the lending institution can only take legal measures To protect their own interests, they file a lawsuit with the court, and the court will make a decision to let the borrower perform its repayment obligations.

As a defaulting party, the borrower will be disgraced in court, and the property under his name may be seized or sealed according to law, and the court may enforce repayment.

6. Becoming a defaulter

This situation occurs after the court judgment. The borrower has the ability to perform but refuses to perform the effective legal documents, which may be included in the breach of trust. The list of persons subject to execution is then published through newspapers, radio, television, the Internet, court announcements, etc., so that the people across the country can know it as a sign of credit and punishment.

7. Restricted high consumption

Generally, a loan institution applies for a high consumption restriction, and upon review and decision by the court, a high consumption restriction is issued to the person subject to execution, that is, the borrower who fails to fulfill the effective legal documents. For example, they are not allowed to fly, their children are not allowed to attend high-fee private schools, they are not allowed to buy houses or cars, and they are not allowed to travel or take vacations.

8. If the circumstances are serious, it may rise to the criminal level

Originally, failure to repay borrowed money is just a civil dispute. If the borrower refuses to fulfill his repayment obligations, he will be prosecuted by the court. During the enforcement process, those who beat or injure staff, or hide, transfer, or damage property that has been seized in accordance with the law, may rise to the criminal level and be detained or sentenced to jail if the circumstances are serious.

If the online loans themselves are non-compliant, then the overdue online loans will not have a big impact on personal credit status. However, your online loan records will be retained in online loan big data. You can query through "Beijian Quick Check" to view your online loan history, including details of overdue online loans, debt status, breach of trust information, and whether you have been included in an online loan blacklist.

Extended information:

What should I do if I can’t pay the small loan loan temporarily?

You can use the following methods if you cannot borrow money temporarily.

1. Borrow money from relatives and friends to pay back

It is to use the money of relatives and friends for a temporary transition to avoid the occurrence of these adverse consequences. After all, there is still some affection between relatives and friends. It won’t be as unfamiliar as a lending institution, but at best it’s just a temporary relief, and you’ll always have to pay back the money you should.

2. Selling some idle assets

For example, high-value assets such as precious metal jewelry, personal cars, and digital appliances can be used to repay overdue debts after selling, which is better than being forced to do so by the court in the future. It's good. Even if you can't pay it off in one go, it can alleviate some of the consequences of overdue payments, and at least you have a good attitude towards repaying the debt.

3. Take the initiative to negotiate with the lending institution

Don’t end up in a situation where your credit is seriously damaged and you have to go to court. When the lending institution collects overdue debts, actively negotiate and communicate. Indicate your attitude towards repayment, but you need to extend some repayment time. If the purpose of the lending institution is to recover the arrears, then an agreement can still be reached.

4. Face it positively and work hard

Although the small loan cannot be repaid, the pace of life will not stop. You must always have some sources of income. Reduce some living expenses, and the money saved can be used to slowly repay the loan. In one word, increasing revenue and reducing expenditure is the fundamental way to solve the problem.