What will the bank do if the car loan is overdue for 3 months?

If the car loan is overdue for 3 months, the bank will take the following measures:

1. Increase penalty interest and late payment fee: the bank will add penalty interest and late payment fee to the unpaid items within the overdue period according to the contract. Penalty interest is the interest calculated according to the overdue amount and the number of days, and the late payment fee is the punishment for the borrower's overdue repayment. These extra costs will increase the total amount of loans and increase the repayment burden of borrowers.

2. Send a reminder notice to the borrower: the bank sends a reminder notice to the borrower by telephone, SMS, email, etc. Remind him to repay the loan and inform him of the seriousness of the overdue situation. The collection notice generally includes detailed overdue amount and days, as well as possible follow-up legal actions.

3. Reporting to the personal credit information system: The bank will report the overdue records of the borrower to the personal credit information system, which will have a serious negative impact on the borrower's credit record. Overdue records will be kept in the personal credit report for a period of time, which may lead to difficulties for borrowers in future loan applications or adversely affect interest rates.

4. Seizure and auction of vehicles: Banks have the right to take compulsory measures to seize and auction overdue vehicles in order to recover the loan amount through auction. According to the contract and relevant laws and regulations, banks can dispose of the auction proceeds according to law to repay loans.

To sum up, if the car loan is overdue for 3 months, the bank will take a series of measures to deal with it, including raising the penalty interest and late payment fee, sending a collection notice, reporting to the personal credit information system, possible vehicle seizure and auction. The borrower should repay the loan in time to avoid these consequences and maintain a good credit record.

Extended data:

The car loan business between banks and borrowers will usually sign the automobile mortgage Agreement. According to the Contract Law of People's Republic of China (PRC) and other relevant laws and regulations, both parties shall perform the loan and repayment obligations as agreed. If the borrower fails to repay the loan within the time limit, the bank has the right to take legal measures to recover the debt.

Personal credit information system is a credit information sharing platform established by the Credit Information Center of China People's Bank, which records personal credit status and credit history. Banks, financial institutions, etc. You can check the borrower's credit record from the personal credit information system and evaluate its credit risk. The record of overdue repayment will have a negative impact on the borrower's credit rating, which may cause the borrower to face additional restrictions on loans and credit cards.

Seizure and auction of vehicles is a way for banks to recover loans by compulsory means. In the case that the repayment is overdue for a long time and cannot be solved by other means, the bank has the right to apply to the court for seizure and auction of the vehicle mortgaged by the borrower. The auction proceeds can be used to repay the loan principal and interest, but usually the auction price is low, and the borrower may have to bear the remaining debts.

In short, the borrower should repay the loan on schedule in strict accordance with the contract to avoid the extra cost and credit risk caused by overdue. If you encounter repayment difficulties, you should contact the bank in time to find a solution to avoid more serious consequences.