What will happen to online loans?

If the online loan is not repaid, it may face the following consequences:

1, overdue penalty interest: according to the loan contract, overdue repayment may result in high penalty interest. These penalty interests are usually calculated according to a certain proportion and accumulated day by day, resulting in an increasing amount of arrears.

2. Credit record damage: overdue repayment will have a negative impact on personal credit record. This will make individuals face higher interest rates and stricter approval requirements when applying for financial services such as loans and credit cards in the future, and may even be rejected.

3. Collection action: Borrowing institutions can take various collection measures, such as telephone calls, text messages, door-to-door collection, etc., to recover the arrears. In serious cases, the borrower may report the debtor's information to the credit reporting agency, further affecting personal credit.

4. Legal proceedings: If the amount of arrears is large and the arrears are long, the borrowing institution can take legal measures to recover the arrears. This may lead to additional economic burdens such as legal fees and attorney fees, and may face more serious consequences in legal proceedings.

To sum up, the arrears of online loans will also lead to overdue penalty interest, damage to credit records, collection actions and possible legal proceedings. Therefore, it is suggested that the borrower repay the loan on time within the agreed repayment period to avoid unnecessary consequences.

Frequent application for loans or operations will increase personal credit risk and make applications more likely to be rejected. You can know the personal credit risk index in "Sixi Data". The higher the risk score, the easier it is for the application to be rejected.