You have a debt at the bank that is due to be paid but now you cannot afford to pay it. So, what's wrong with a bank loan that doesn't pay?
You have a debt at the bank that is due to be paid. However, due to unexpected financial problems, you were unable to pay on time. So, what 's wrong with a bank loan that doesn't pay ?
Today, you go to the bank to carry out procedures to receive capital to do business, buy a house on installments , buy a car, etc. But the situation is not always as favorable as you want it to be. Is it okay to borrow money from a bank that doesn't pay , borrow money from a bank that doesn't pay off a crime , just thinking about it makes you worry and bewildered for a long time. To answer this question, you first need to consider which of the following cases your loan falls into overdue debt.
Domestic and foreign banks always have many different forms of loans, suitable for all customers' needs such as unsecured loans, overdraft loans, installment loans, etc. With each form, there will be regulations on interest rates and separate payment methods. Depending on the purpose for the capital source, you will choose the form of loan that is most suitable for you.
There are four popular types of loans today:
1. Unsecured loans: a form that many people choose to borrow, because they do not need many complicated conditions (such as collateral) but only rely entirely on the borrower's reputation. Individuals with small needs such as shopping, entertainment, etc. often choose this type of loan.
2. Overdraft loan: when confirming a fixed income each month, individual customers who need to use more than the amount currently available in the account will be entitled to a loan. But there is a note that the limit granted can only be 5 times higher than the salary.
3. Installment loan: Is a form of loan where the interest and principal are usually equal each month. The loan repayment term and limit will fluctuate depending on the needs and repayment capacity of each customer.
4. Mortgage loan: is a traditional form of bank loan and you must have collateral. The advantage of a mortgage loan is a high loan limit, up to 80% of the value of the mortgaged property. The loan term lasts up to 25 years, which is very suitable for both businesses and individuals. However, you will have to bear many associated fees such as late fees or prepayment fees, etc.
When a bank loan cannot be paid , that is, when the debt repayment date is stated in the contract, but cannot pay the principal and interest, the bank will consider it as overdue debt. Usually, overdue debt will fall into the following two cases:
- Overdue debt with collateral ( mortgage loan ): if the borrower has mortgaged his house, real estate, gold, etc., but cannot repay the debt and principal when due. The bank will probably recover the capital based on the collateral.
- Overdue debt without collateral (unsecured loan): unsecured borrowers cannot repay the loan and the principal when due, the bank faces the risk of losing everything because there is no collateral.
At this point, the question "Is it okay if the bank debt can't be paid? ' partly answered. Because once you have overdue debt, it is certain that your credit score in the eyes of credit institutions has been significantly reduced. If you want to continue to borrow in the future, it will be difficult for you to get support, including business cash loans or unsecured loans.
Overdue debts will be considered based on the delinquency time, with a different degree of recovery and handling:
● Debt group 1: payment of debts that are overdue for less than 10 days.
● Group 2 debt (debt group still supported by some banks and credit institutions): payment of overdue debts from 10 to under 30 days.
● Debt group 3: payment of debts that are overdue from 30 to less than 90 days.
● Group 4 debt: payment of debts that are overdue from 90 to less than 180 days.
● Group 5: debt payments overdue for 180 days or more.
Based on the principle of debt recovery announced from the State Bank and internally issued in each bank, groups of overdue debts will be handled as follows:
Unpaid bank loans with collateral will be handled in accordance with the provisions of the Civil Code 2015.
First, the bank will send a notice letter including the following contents: reason for handling, guaranteed obligations, description of assets and method, time, and location of secured asset handling.
After that, the property holder must hand over the security property to the receiver for handling according to Article 299 of the 2015 Civil Code.
Next, the secured party will handle the property (based on the provisions of Article 303 of the Civil Code 2015) by the following methods: auction, the secured party sells itself or receives the property itself to replace the performance of the guarantor's obligations.
Finally, pay the amount obtained from the handling of the security property in accordance with the provisions of Article 307 of the Civil Code 2015.
Firstly, the bank/credit institution will contact the customer to notify and request debt payment. In case customers have difficulties and cannot repay unsecured loans , they can declare to receive support.
Secondly, in case the customer intentionally does not answer the phone or has no intention to repay the loan, the bank/credit institution can contact the reference number (relative, company recorded in the loan application) to about past due debt.
Finally, if the customer continues to not pay the debt or does not have a good faith to try to negotiate with the bank/credit institution, overdue debt is up to group 5, it can directly complete the lawsuit file through the bank. authorized to collect debt.
When taking a loan, there is a civil relationship between the bank/credit institution and you. Although the law does not currently provide specific provisions on the consequences of a delinquent balance, once you pay late or do not pay the debt, you have violated the obligations of the borrower and infringed on the rights of the lender. get a loan. At this point, you will have to face consequences such as:
- When taking a loan with collateral, the bank/credit institution is completely entitled to recover the debt by taking away that property.
- Outstanding balances that are not paid on time will continue to multiply over time. Not only affecting the speed of the bank's capital flow, you can be criminally liable if you do not repay on time.
If you have a loan in one of the situations below, the possibility of you being criminally responsible (going to jail) is very high.
- The police agency has enough documents and evidences to prove that you do not intend to borrow, but just a trick to appropriate property: giving untrue information and documents, not intending to return the property. property (appropriation) to the guarantor. Based on Article 174 of the Penal Code 2015, you will be prosecuted for fraud to appropriate property.
- Using fraudulent tricks to appropriate borrowed, rented, borrowed property or by the due date to return the property but deliberately failed to pay (despite having sufficient conditions and capabilities). According to Article 175 of the Penal Code 2015, will be handled for the crime of abusing trust to appropriate property.
- Borrowing, borrowing or renting property under contract and used for illegal purposes leading to inability to return. In this case, they will be prosecuted for the crime of abusing trust to appropriate property.
Is it okay if the bank debt is not paid , the answer is yes. Depending on the seriousness of the breach of contract, you will be liable for civil or criminal liability for not complying with the agreement between the two parties. Anyway, keep the word "credibility" in life so that you can complete everything to your liking!
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