Gomeme sent me a text message when my loan was one month overdue. Will they come to collect the money?

No, if the payment is overdue, you may be sued or other means of collection may be used.

The dangers of overdue loans:

1. Penalty interest and an additional interest of 50% will be charged

Although the policies of each lending institution are different, in general Generally speaking, banks will be easier to talk to than small loan companies. If a credit loan is overdue, the lending institution will first call to collect the loan to remind the borrower to repay. At the same time, the interest rate will rise as a daily penalty interest.

The intensity of penalty interest varies from loan institution to loan institution. For example, Citibank will charge an additional 50% interest on the original interest rate. Some small loan companies may charge even more liquidated damages. This means that if you borrowed an estimated 10,000 yuan, but if you don’t repay it for more than 3 months, you may end up having to pay tens of thousands in interest and late fees.

2. A bad credit record will affect future loans and credit card applications

Every time you are overdue, your name will appear in the bank's internal system the next day. Then the bank manager and risk control will see it. After the due date, bad records will inevitably be left on your credit report. Once left, the record may be retained for 3 to 7 years. If you want to borrow money from other banks in the future, you may not be able to apply easily due to bad credit.

If the overdue circumstances are serious, future mortgage loans and car loans will be affected. Penalty interest is only a monetary loss, but a bad credit record is a loss of intangible assets, causing an impact that money cannot make up for.

3. Unable to enjoy loan discounts, or even unable to apply for a loan

Many people find that when they apply for a mortgage again, they find that they have left behind on their old mortgage due to carelessness. If you have too many overdue repayment records, in addition to the penalty interest for overdue mortgage loans, you may not be able to successfully obtain the preferential interest rate for bank mortgage loans. What's more, it will become impossible to apply for a mortgage loan again.

4. Being blacklisted will prevent their children from going to key schools

And some "old lads" who deliberately delay their travel debt will be blacklisted. As a result, they will not be able to take flights, high-speed trains, or stay in accommodation. What is even more serious is that their children will not be able to attend key schools. There will be more penalties in the future, which can make life difficult.

5. Impact on personal career

For students whose student loans are overdue, if they are overdue for more than 90 consecutive days and the circumstances are serious, the bank or school will publish the ID number, For overdue information, please inform your employer. If you default on payment maliciously or intentionally, the bank will sue. If it is overdue but not for 90 consecutive days, and if it can be remedied in time and repaid on time, the credit level will not be greatly affected.

6. The bank issues a lawyer's letter and goes to court to sue

If you have not paid for more than 3 months, it is very serious! The lending bank will collect the due loan in accordance with the law. , in accordance with the provisions of the loan contract and the guarantee contract (mortgage or pledge contract), a lawsuit will be filed in court. 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 mortgaged and pledged assets. Property etc.

7. After the judgment is made, it will be enforced

After the judgment is made, the property will be enforced in accordance with the law (withholding of deposits, auctioning of mortgages, etc.) to repay the bank's loan losses. Specifically, it includes: loan principal, loan interest, overdue interest and penalty interest, as well as all resulting litigation costs, related costs incurred when disposing of mortgage (pledge) properties and realizing them, etc.

8. Those with serious circumstances will be subject to legal sanctions

If you have the ability and refuse to execute effective legal documents, you will be subject to legal sanctions. The guarantor is responsible for repaying the debt if the debtor is unable to repay.