If you fail to repay within the stipulated time, you may be complained by the merchant, which will have an impact on your reputation. But for a thousand yuan, you should just keep calling and sending text messages to urge you to repay, rather than suing you.
If you continue to fail to repay your debt or intentionally fail to repay it, you may be subject to criminal liability such as economic risks, credit risks, and legal risks.
The consequences of overdue loans:
1. Penalty interest.
Additional interest of 50%. Although the policies of each lending institution are different, banks are generally easier to talk to than small loan companies.
If the credit loan is overdue, the lending institution will first call the borrower to remind the borrower to repay, and the interest will also increase on a daily basis as a penalty interest. The regulations of each lending institution are different.
2. Create a bad credit record, which will affect future loan and credit card applications.
As long as you fail to repay the loan on the second day after it is overdue, your name will appear in the bank's internal system at the same time, and then the president and risk control will see it.
After the due date, there will inevitably be negative records on your credit report. Once you leave it, the record may be retained for 3 to 7 years. If you want to apply for a loan from another bank in the future, it may be difficult to apply for it due to poor credit.
If the delinquency is serious, it will affect your future home and car loans. Penalty interest is only a monetary loss, while a bad credit record is a loss of intangible assets, causing an impact that money cannot make up for.
3. You cannot enjoy loan discounts or even apply for another loan.
When many people reapply for a mortgage, they find that due to carelessness, they have left too many overdue repayment records on their old mortgages. In addition to the penalty interest for overdue mortgage payments, there are also It is possible that you may not be able to successfully obtain the preferential interest rate for a mortgage loan from a bank, and even worse, it may become impossible to apply for a mortgage loan again.
4. Being blacklisted means that children cannot go to key schools.
Some "old people" who deliberately default on their travel debts will also be blacklisted. In this way, they will not be able to take flights, high-speed rail, or stay in accommodation; what is more serious is that their children will not be able to attend key schools; there will be more penalties in the future, and it can be said that life will be difficult to move forward.
5. Affects personal future.
For students whose student loans are overdue, if they are overdue for more than 90 consecutive days and the circumstances are serious, the bank or school will publish their ID number and overdue information in the media, or notify their employer.
The bank will pursue legal liability for those who default maliciously or intentionally.
5. If the loan is overdue but not for 90 consecutive days, and if the overdue loan can be remedied in time and the repayment is made on time, the credit rating will not be greatly affected.
6. The bank issues a lawyer’s letter and files a lawsuit in court.
If you do not repay the loan for more than 3 months, it is very serious. The lending bank will collect the due loan in accordance with the law, and will pay the loan in accordance with the provisions of the loan contract and the guarantee contract (mortgage contract or pledge contract). If you file a lawsuit in court, the court will take property preservation and other measures, including freezing the deposits in all bank accounts of the lender and loan guarantor, seizing the pledged property, etc.
7. After the judgment takes effect, it will be enforced.
After the judgment is made, the property will be enforced according to law (withholding deposits, auctioning pledged properties, etc.) to repay the bank's loan losses. Specifically, it includes: loan principal, loan interest, overdue interest and penalty interest, as well as all resulting litigation costs, costs related to the disposal and realization of collateral (pledge), etc.
8. Those with serious circumstances will be subject to legal sanctions.
Those who have the ability but refuse to execute effective legal documents will be subject to legal sanctions. The guarantor is responsible for repayment if the debtor is unable to repay.