What are the consequences of overdue online loans?

The consequences of overdue online loans include: bearing high penalty interest, paying liquidated damages, reducing or canceling the quota, being collected by SMS, and being restricted from high consumption.

1. Bear a high penalty interest: after the online loan is overdue, the penalty interest will be charged on a daily basis on the day after the repayment date. The penalty interest rate is different from the normal loan interest, but it is calculated on a daily basis and compounded monthly until the arrears are paid off.

2. Payment of liquidated damages: Individual online lending platforms will also collect liquidated damages from overdue borrowers, generally 3% of the remaining unpaid principal, which will be collected once a month, that is, if it is not paid off in the current month, it will be collected again in the next month.

3. Reduce or cancel the credit line: The credit line of online lending platform will be adjusted irregularly. If the overdue borrower fails to perform on time, the comprehensive score of the platform will be lowered. Once it falls below the credit standard of the platform, the credit line will be cancelled or reduced.

4. SMS collection: The most commonly used collection method of online lending platform will send SMS to urge the borrower to repay after it is overdue, and it will be sent every day before the borrower pays off. Some online lending platform insiders call, and some outsource to third parties to make collection calls, with the purpose of urging borrowers to repay.

5. Restrict high consumption: If the online loan fails to become the executor of dishonesty, it will be allowed to travel by plane or second-class ticket of high-speed rail. And you are not allowed to go to five-star hotels and spend money on golf. These high consumption can't be enjoyed even if you have money until you pay off the overdue loans.