According to the loan contract and guarantee contract (mortgage or pledge contract), the loan bank will sue the court, and the court will take measures such as property preservation, including freezing the deposits in all bank accounts of the lender and the loan guarantor and sealing up the pledged property.
After the judgment is made, the property will be enforced according to law (deducting deposits, auctioning collateral, etc.). ) to repay the bank's loan losses.
Specifically, it includes: loan principal, loan interest, overdue interest, penalty interest, and all litigation costs arising therefrom, and related expenses incurred when disposing of pledged property.
Credit will be affected. If the borrower is a company, your company will be recorded in the national bank credit information system, and loans in the name of individuals will also be recorded as overdue loans in the national personal credit information system.
If you are not in arrears with the bank loan in bad faith and have the ability to pay the normal loan interest, it is recommended to apply to the loan bank for loan extension first, explaining the willingness to repay, the fact that the loan has not been repaid temporarily and the plan for future repayment. Under normal circumstances, the bank will give a grace period.