Loan contracts generally have default clauses and penalty clauses. If the borrower repays the loan on time, it only needs to repay the principal and interest normally. Once the borrower breaches the contract, the borrower needs to pay the corresponding liquidated damages or penalty interest according to the contract.

2, lead to litigation

If the borrower fails to pay back the money, the lending institution may bring a lawsuit to the court. If the borrower loses the case, he will not only face the assets auctioned at a low price to repay the debt, but also bear the legal fees and attorney fees. These extra burdens are the cost of the borrower's default. If the borrower refuses to repay the loan, it may be blacklisted, and it is generally blacklisted, so many things will be restricted.

3. Personal credit information is affected.

At present, many lending institutions have been connected to the credit information system of the People's Bank of China, and borrowers who do not pay back the money will soon be uploaded to the credit information system of the central bank, so it will be very difficult to obtain loans through other lending institutions.

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Problems needing attention in personal credit loan

1. Applying for personal micro-credit loans, whether it is bank lending or financial institution lending, requires the borrower to have repayment ability. In other words, those who claim that they can borrow money unconditionally must not be trusted.

2. Can I get a loan with my ID card? An ID card is a document to prove one's identity, but not one's credit status. Therefore, any formal lending institution will not pass the loan review only by its ID card.

No matter whether you borrow money from banks or financial institutions, you should make sure to repay it on time, so that the other party will recognize the credit when you need the loan next time.

Baidu encyclopedia-personal credit loan