Repay the loan. What are the consequences?

If you don't repay the loan, there will be the following consequences:

1. overdue penalty interest and late payment fee: if the repayment is not made on time, the lending institution will usually charge overdue penalty interest and late payment fee for the outstanding amount. The overdue penalty interest is calculated according to a certain proportion, and the late payment fee is charged according to a certain amount. These expenses will increase the burden and drag down the personal financial situation.

2. Impact on personal credit record: The borrower's failure to repay the loan on time will lead to personal credit record damage. Credit record is an important indicator for financial institutions and other credit institutions to evaluate the credit value of borrowers. A bad credit record will affect an individual's ability to obtain other loans, credit cards and other financial services.

3. Collection behavior and legal proceedings: the lender may take collection measures, such as telephone notification and door-to-door collection. If the circumstances are serious, the lending institution has the right to recover the arrears through legal channels, and may apply to the court for a ruling to freeze the borrower's assets. Such legal proceedings may lead to more serious consequences, such as auction or seizure of assets.

In short, non-repayment will lead to the increase of overdue penalty interest and late payment fee, the damage of personal credit record and possible collection behavior and legal proceedings.

Extended data:

According to the relevant laws and regulations of our country, the loan contract is a legal act, and the borrower should fulfill the obligation to repay the loan in the way, time and amount agreed in the contract. Overdue repayment will trigger the consequences stipulated by relevant laws. According to the provisions of China's Contract Law and Civil Procedure Law, lending institutions have the right to take legal collection measures and apply to the court for legal proceedings under the statutory conditions. However, the specific treatment methods and measures may vary from case to case and region. If faced with the loans overdue problem, it is suggested to negotiate with the lending institution in time to solve it, fulfill the repayment obligation on time, and avoid possible consequences and legal proceedings.