Details are as follows:
1. Overdue days: refers to the days when the loan cannot be repaid on time. Generally speaking, the more days overdue, the greater the penalty interest. Banks usually calculate the number of overdue days in days.
2. Default interest rate: The bank has set a certain default interest rate to calculate the default interest amount of overdue loans. The penalty interest rate is generally annualized, depending on the bank and loan contract. When calculating the penalty interest, the specific amount shall be determined according to the overdue days and the penalty interest rate.
Summary:
The penalty interest of bank loans is calculated according to the overdue days and the penalty interest rate. The more days overdue, the greater the penalty interest amount. The default interest rate is generally an annualized interest rate, which is agreed by the bank and the loan contract.
Extended data:
There are other conditions to be considered in the calculation of penalty interest, such as whether to use compound interest calculation and whether there is a minimum penalty interest amount. The specific calculation method can be consulted by banks or relevant loan contracts.
In addition, banks will generally send overdue notices after overdue, reminding borrowers to repay their loans, and explaining the consequences of overdue and the amount of penalty interest. During the overdue period, the borrower should pay off the arrears as soon as possible to avoid the accumulation of penalty interest.
I hope the above contents are helpful to you. If you have any other questions, please feel free to ask me.