What will happen if the loan is not?

Delaying repayment obligations will lead to the following legal risks: First, loan contracts with high liquidated damages generally have default clauses and penalty clauses. If the borrower repays the loan on time, it only needs to repay the principal and interest normally. Once the borrower breaches the contract, the borrower needs to pay the corresponding liquidated damages or penalty interest according to the contract. Second, attract litigation If the borrower does not pay back the money, the lending institution may bring a lawsuit to the court. If the borrower loses the case, he will not only face the auction of assets to pay off debts, but also bear legal fees, preservation fees, execution fees and attorney fees. If your house is not enough to repay the bank loan after the auction, the bank has the right to freeze your bank property. If the borrower refuses to repay the loan, it may be blacklisted. Generally, the person subjected to execution is blacklisted to restrict consumption. The third party's credit information is affected. Now many lending institutions are connected with the credit information system of the People's Bank of China, and the credit stain of borrowers' non-repayment will soon be uploaded to the credit information system of the central bank, so it will be very difficult to borrow through other lending institutions. The time of bad credit record is five years, and the bad credit record can only be eliminated if the loan is paid off within five years, which means that once the borrower fails to pay back the money, it will be difficult to borrow from the bank or apply for a credit card in the next five years.