What if I owe a loan to the bank and can't pay it back?

Consequences of not repaying the loan:

1. The lending bank will collect the loan according to law. The loan bank brings a lawsuit to the court according to the loan contract and guarantee contract (mortgage or pledge contract), and the court will take measures such as property preservation, including freezing the deposits in all bank accounts of the lender and loan guarantor and sealing up the pledged property.

2. After the judgment is made, the property will be enforced according to law (deducting deposits, auctioning collateral, etc.). ) to repay the bank's loan losses.

Specifically, it includes: loan principal, loan interest, overdue interest, penalty interest, and all litigation costs arising therefrom, and related expenses incurred when disposing of pledged property.

3. Credit will be affected. If the borrower is a company, your company will be recorded in the national bank credit information system, and loans in the name of individuals will also be recorded as overdue loans in the national personal credit information system.

4. If you are not in bad faith in defaulting on the bank loan and are able to pay the interest on the normal loan, it is recommended to apply to the loan bank for an extension of the loan first, stating the willingness to repay, the fact that the loan has not been repaid for the time being and the plan for future repayment. Under normal circumstances, the bank will give a grace period.

Extended data

Lender's requirements:

1, natural person aged 18-60 (Hong Kong, Macao, Taiwan, mainland China and foreigners are also allowed)

2. Have a stable occupation, stable income and the ability to repay the loan principal and interest on schedule.

3. The borrower's actual age and loan application period shall not exceed 70 years old.

Determination of the loan object of commercial banks;

First, it should reflect the essential requirements of the credit fund movement, and the loan should be able to guarantee the repayment of principal and interest; Second, it must meet the requirements of the loan principle of commercial banks, and the loan issuance should follow the principles of efficiency, safety and liquidity; Third, to reflect the requirements of loan investment policy, loan investment should obey the national industrial policy. ?

Therefore, the loan object of a commercial bank must be a commercial enterprise, that is, it has economic income, the prepaid value can be compensated and increased, and there is a source of funds to repay the principal and interest of the loan. Any non-operating unit without economic income can only be the object of financial allocation, but not the object of bank loans.

References:

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