1, penalty interest and 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.
2. Credit damage.
3. Collect in various ways. Banks and small loan companies have their own collection systems. Novices will send you text messages and call you to collect money. In severe cases, there will even be a 234-hour press from the collection staff, which will seriously interfere with your work and life.
Will be prosecuted. 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.
Legal basis: Article 677 of the Civil Law states that if the borrower repays the loan in advance, the interest shall be calculated according to the actual loan period unless otherwise agreed by the parties.
Article 678 of the Civil Code: Before the repayment period expires, the borrower may apply to the lender for extension; If the lender agrees, it can be extended.