Consequence 1. Under normal circumstances, the loan interest may be higher during the overdue period, and there may also be liquidated damages. If the loan is not repaid, the first thing you encounter is a high penalty interest. Some financial institutions need you to pay liquidated damages on the basis of penalty interest. These expenses add up to a lot of money.
Consequence 2: Credit damage. If you borrow money from a bank and fail to pay it back within the time limit, your personal credit report will be tainted, and it will be even more difficult to apply for bank cards and loans in the future. Even small loan companies are not included in the credit report, and there is a "blacklist" system in the circle. If a company does not pay back, it will be difficult to approve other loans.
Consequence 3: being collected by various means. Banks and small loan companies have their own collection systems. Xiaosan will send you text messages and call friends in the address book, including your family, relatives and friends. In some serious cases, there will even be a collection staff pressing you around the clock, seriously disrupting your work and life.
Consequence 4. If you are sued, your assets may be confiscated. Financial institutions will also arm themselves with laws. If you don't pay the arrears, you will be prosecuted if the amount is relatively large. Once the court makes a verdict, even if you are reluctant, you must execute the "repayment ruling". Otherwise, the court will seal up the property under your name according to law and repay the arrears with the proceeds from the auction.
Consequence 5. If the borrower refuses to pay back the money, it can involve fraud, and if it is serious, it will go to jail. Although non-payment of money is a civil dispute, it will not rise to a criminal case. However, if the borrower resolutely refuses to pay back the money, the court will investigate the criminal responsibility of the lender and even go to jail.