Overdue borrowing will result in penalty interest, overdue records, derating, and impact on credit scores, etc.: 1. Overdue penalty interest will be incurred, and the interest calculation method is overdue amount × number of overdue days × overdue interest rate; 2. Overdue interest rate The longer the record is uploaded to the credit system, the greater the impact on the credit score; 3. The loan limit may be reduced after overdue; 4. The credit record is damaged, affecting financial services such as loans and credit card applications; 5. Severe overdue loans may be Collection, freezing of assets, court enforcement, etc.
The consequences of overdue borrowing
Get straight to the point answer:Overdue borrowing will cause a series of consequences Negative impacts include penalty interest, overdue records, reductions, and even impact on credit scores.
Detailed answer:
Penalty interest:
After the expiration date, overdue interest will be charged on the loan. The interest calculation method is overdue amount × number of overdue days × overdue interest rate. The overdue interest rate is relatively high, generally 0.05% daily interest rate, which is much higher than the borrowing interest rate.
Overdue records:
Overdue records will be uploaded to the central bank’s credit reporting system. The longer the overdue period, the greater the impact on your credit score. If it is overdue for more than a certain period (usually 30 days or 90 days), it will cause a stain on your credit report and affect financial services such as loans and credit card applications.
Decrease:
After the due date, the borrowing platform may reduce the loan amount. This is because the platform believes that the borrower has insufficient repayment ability and needs to reduce risks. Lowering the limit can reduce the platform’s losses.
Influence on credit score:
Credit record is an important reference for personal credit. Overdue borrowing will affect your credit score and lower your personal credit rating. A low credit score can lead to higher loan interest rates, longer approval times, or even the inability to get a loan.
Serious consequences:
If the loan is overdue for a long time and the amount is large, the platform may take more severe measures, such as:
- Collect debts from borrowers, including phone calls, text messages, and door-to-door visits.
- Freeze other assets of the borrower, such as bank deposits.
- Transfer overdue records to the court and apply for enforcement.
The above is the detailed content of What will happen if the loan is overdue?. For more information, please follow other related articles on the PHP Chinese website!

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