The consequences of bank loans overdue are:
1, the bank loan records will be uploaded to the central bank's credit information system. Generally, the overdue period will be recorded in the personal credit report, which will have an impact on personal credit. Later, if you apply for a loan and apply for a credit card, the pass rate will be reduced;
2. loans overdue will also generate high interest and liquidated damages, and the longer the overdue period, the more penalty interest;
3. If the overdue time is long and the amount is large, and the bank does not repay after collection, then the bank will still bear criminal responsibility.
What if the borrower fails to repay the principal and interest on time?
If the borrower fails to repay the loan on time, it shall be liable for breach of contract. If the parties have an agreement on the overdue interest of not repaying the loan on time, they shall pay the overdue interest to the creditors. However, the agreed overdue interest shall not exceed four times the listed interest rate of the one-year loan market when the Contract is established.
legal ground
Article 577 of the Civil Code
If one party fails to perform the contractual obligations or fails to meet the contractual obligations, it shall be liable for breach of contract, such as continuing to perform, taking remedial measures or compensating for losses.
Article 676
If the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant state regulations.
What will happen if the mortgage is not on time?
If the mortgage is not repaid on time, it will be notified by the bank, with penalty interest and the record of the last overdue repayment in the credit report.
According to the loan contract and legal provisions, "stopping supply" may face the following consequences:
1. Termination of the Contract According to the loan contract, if the borrower's expected repayment reaches a certain number of times, the lending bank has the right to terminate the contract.
2. If the borrower who is liable for breach of contract "stops paying", it needs to pay all the loan principal and interest, default interest, compound interest, and all legal fees, attorney fees and other expenses.
3. Auction and sale of real estate If the borrower takes the real estate as the maximum collateral and fails to repay the loan despite repeated reminders from the loan bank, the bank can auction and sell the collateral, and the proceeds will be used to repay the principal and interest of the loan in priority.
4. The developer shall bear joint and several liability. If the developer is the guarantor of the borrower, it will bear the corresponding civil liability. Therefore, borrowers must make a reasonable repayment plan before applying for housing mortgage loans, so as to avoid unpredictable repayment and reduce a lot of unnecessary troubles for themselves.
Mortgage, also known as house mortgage. Mortgage means that the buyer fills in the mortgage loan application form to the bank and provides legal documents such as ID card, income certificate, house sales contract and guarantee letter. The bank promises to provide loans to the buyer after passing the examination, and according to the house sales contract provided by the buyer and the mortgage loan contract signed between the bank and the buyer.
Real estate mortgage registration notarization, the bank will directly transfer the loan funds into the bank account of the selling unit within the time limit stipulated in the contract.