Can a small loan not be repaid? What will happen to loans overdue?

Micro-loans cannot be repaid, and there will be a series of consequences if they are overdue. The following is a detailed explanation:

1. Microfinance is a kind of microfinance product, and the borrower needs to repay the loan at the agreed time. There are two main reasons for the inability to repay:

-The loan contract is a legal document signed by both parties voluntarily and protected by the laws of China. According to the contract law, the borrower has the obligation to fulfill the repayment obligation on time.

-Microfinance usually involves cooperation with public institutions and financial institutions. Failure to do so within the time limit may also lead to the borrower's loss of credit and affect its future credit record and borrowing ability.

2. A small amount of loans overdue will lead to a series of consequences, as shown in the following figure:

-overdue penalty interest: the borrower has to pay overdue interest, and the fee may increase over time.

-Bad credit record: overdue credit will be recorded in the personal credit report, which will have a negative impact on the borrower's credit evaluation and limit his ability to obtain other credit products in the future.

-Collection measures: The borrower may receive collection measures such as phone call, text message or door-to-door collection.

-Legal proceedings: In case of serious overdue, the lending institution has the right to take legal proceedings and other means to recover debts.

Summary: Small loan borrowers have to pay back the money, and overdue repayment will lead to a series of consequences, including penalty interest, bad credit records, collection measures and possible legal proceedings. Therefore, borrowers should fulfill their repayment obligations on time and maintain a good credit record and financial status.

Extended data:

Microfinance is a kind of micro-credit product in China, which aims to provide convenient lending services for low-income groups. This kind of loan is very common in China, but we should pay attention to the terms of the contract, repay the loan on time and avoid unnecessary trouble.