How to calculate the penalty for overdue online loans? There are these two simple ways to calculate!

Everyone who is short of money needs the help of a loan to a greater or lesser extent, whether it is a bank loan or an application for a private online loan, they need to repay on time, and once they fail to repay it after the deadline, they may incur liquidated damages. So how to calculate the penalty for overdue liquidated damages? Today we will give you a brief introduction.

1. Liquidated damages for overdue by the bank

So far, the People's Bank of China has issued relevant regulations: the "Circular of the People's Bank of China on Issues Concerning the Interest Rate of RMB Loans" (Yin Fa [2003] No. 251) stipulates that the penalty interest rate for overdue loans (loans where the borrower fails to repay on the date agreed in the contract) will be changed from the current interest rate of 2.1/10,000 per day to 30%-50% of the loan interest rate specified in the loan contract, and the interest that cannot be paid on time will be compounded according to the penalty interest rate.

For example, if you apply for a loan from a bank, the benchmark interest rate is 6%, and if it is overdue, it will generally rise by 50%, and the penalty interest rate will be 9%.

Calculation formula: first month principal and interest = principal + principal * annual interest rate 12;

2nd month's principal and interest = (principal 12) + (principal - principal 12) * annual interest rate 12;

Principal and interest in the third month = (principal 12) + (principal - principal 12*2) * annual interest rate 12;

And so on. 2. Liquidated damages for overdue private loans

If both interest and liquidated damages are agreed in the loan contract, the total amount of interest and liquidated damages shall not exceed 24% per annum.

Generally, private loans are counted as simple interest, and interest = principal interest rate term.

Therefore, when calculating liquidated damages, all the fees that need to be paid in the end can be calculated as an annual interest rate, and if it exceeds 24%, it does not need to be paid, because it is not protected by law.

The platform has the right to sue after the overdue time of the online loan is generally more than three months, but it will not sue immediately after three months. Unless it is too long overdue, the amount owed is also very high, and the platform has not responded to the reminder many times, then it may be sued.

Once sued, if the repayment is not made by the court judgment, the court may enforce it, and may even list the borrower as a dishonest person. It should also be noted that overdue itself will also have serious adverse effects, and penalty interest will be charged until the arrears are paid off, and personal credit will also be damaged due to overdue.

Now is the era of credit, once there is a stain on credit, many things will be difficult to move forward. Online lending is also the source of big data, once the big data is chaotic, and is included in the credit high risk, it will affect credit and life restrictions, people who do not understand credit and big data can be: four happy data, view their own credit data, understand their own credit data, loan records and risk conditions, etc., to help everyone pay attention to protect their big data credit records.

Extended Information: Can I borrow money if my overall score is insufficient**?

If the comprehensive score is insufficient, I am afraid that it will not be easy to borrow on the formal licensed loan platform in the short term, because it will be reviewed, and the comprehensive evaluation of the system is not up to standard, and the platform will naturally not lend.

It is estimated that only some microfinance platforms that have not been approved by the CBRC and do not hold financial licenses still have the opportunity to borrow. Because the threshold for applying for such small loans is generally low, some even need to provide an ID number or mobile phone number, and they can directly make a payment without review. However, most of these small loans are not very formal, and it is not recommended to apply for them, and they may encounter loan sharks and fraudsters, resulting in damage to personal money.

It is better to choose a formal licensed loan platform for borrowing, which is more secure. For the case of insufficient comprehensive score, the application can be postponed, the problem of personal credit can be solved, and then borrowed after being dealt with, and the loan should be able to be smoothly obtained. For example, if you have bad credit, you should be patient and spend time to accumulate a good record, and if you have too much debt, you should repay your debts in time and reduce your debts.

Now the pressure of social life is very high, many people will face various pressures after work, once they encounter a lack of money, they will seek the help of online loans, bank loans, credit cards, these credit products can achieve consumption first and then repayment, but remember to repay on time, otherwise you will have to pay liquidated damages after overdue. So what is the legal requirement for overdue liquidated damages for online loans? Let's find out together today.

Meaning of liquidated damages:A certain amount of money to be paid to the other party to the contract if one of the parties to the contract violates the provisions of the contract.

Regarding liquidated damages, they should be written in the agreement or contract before borrowing, and you must check them in advance, and you can give up the loan if you encounter unreasonable terms, and if the liquidated damages are not legal, they are not protected by law.

1. The law on liquidated damages for banks

The Notice of the People's Bank of China on Issues Concerning RMB Loan Interest Rates (Yin Fa [2003] No. 251) stipulates:

On the issue of penalty interest rates.

1. The penalty interest rate for overdue loans (loans where the borrower fails to repay the loan on the date agreed in the contract) has been changed from the current interest rate of 2.1/10,000 per day to 30%-50% on the loan interest rate specified in the loan contract;

2. The penalty interest rate for the borrower who fails to use the loan for the purpose agreed in the contract shall be changed from the current interest rate of 5/10,000 per day to the loan interest rate specified in the loan contract.

To put it simply, overdue repayment is a 30%-50% increase in the loan interest rate, and if you are found to have misappropriated the loan to investment and financial management, gambling and other illegal behaviors, it is a 50%-100% increase in the loan interest rate.

2. The law on liquidated damages for private loans

The law does not specify exactly what the liquidated damages should be, but according to the relevant laws, we can get some information.

Article 207 of the Contract Law: "If the borrower fails to return the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or the relevant provisions of the state." ”

In addition, the parties to the contract should clearly agree on the time of payment and the calculation method or amount of liquidated damages or interest for late payment, otherwise in the event of a dispute, the comprehensive rate shall be calculated within 24%.

If the parties have agreed on the termination time for the payment of liquidated damages for late payment, as long as the agreement does not violate the provisions of the law, the court shall calculate the liquidated damages based on the termination time agreed by the parties. If the parties have not agreed on the time for the termination of the payment of liquidated damages, it shall be handled separately according to different circumstances: if the judgment is made to be paid immediately in a lump sum, the liquidated damages for late payment shall be calculated until the date on which the judgment takes effect; Where the judgment has a certain period of time for performance, the liquidated damages for late payment shall be calculated until the expiration of the performance period determined by the judgment.

1. What is the dispute caused by late payment of the house payment?

Disputes arising from late payment refer to real estate disputes caused by the buyer's failure to pay the seller on time for some reason. The developer will hold home buyers liable for breach of contract for late payment. Due to the late payment by the buyer, the developer may require the buyer to bear liquidated damages in accordance with the contract.

If the buyer delays the payment of the purchase price and fails to perform within a reasonable period of three months after the reminder, the developer may request the termination of the contract and require the buyer to bear the liquidated damages agreed in the contract, unless the parties have not agreed otherwise, and if the buyer fails to pay the purchase price as agreed in the contract or within a reasonable period of time, in addition to fulfilling the payment obligation, he shall also pay a certain amount to the other party for breach of contract to bear the liability for breach of contract.

2. What is the basis for liquidated damages in the construction contract?

Basis for liquidated damages in a construction contract: the parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach of contract, and may also agree on the calculation method of compensation for losses arising from the breach of contract. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; Where the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties.

If the parties agree on liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages. Dry sedan chair.

1. General principles applicable to liquidated damages.

1) If there is a specific agreement on liquidated damages in the contract, it shall be as agreed, and if there is no agreement on liquidated damages or the agreement is not clear, it shall be handled as if there is no agreement.

2) The calculation of liquidated damages is based on the total contract price.

3) The amount of liquidated damages shall generally not exceed the total amount of the unperformed part of the contract.

2. In the calculation of liquidated damages for late payment, attention should be paid to the calculation reference basis for different periods.

3. If liquidated damages and fines are agreed, or only fines are agreed, as long as the amount does not exceed the total amount of the unfulfilled part, the fine may be treated as liquidated damages.

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

Article 29 The lender and the borrower have agreed on both the overdue interest rate and the liquidated damages or other expenses, and the lender may choose to claim the overdue interest, liquidated damages, or other expenses, or they may claim them together, but the people's court will not support the part that exceeds four times the one-year loan market interest rate at the time of the conclusion of the contract.

Article 30 The borrower may repay the loan in advance, unless otherwise agreed by the parties. Where the borrower repays the loan in advance and claims that the interest be calculated according to the actual term of the loan, the people's court shall support it.

1. According to the Reply of the Supreme People's Court on the Standard of Calculation of Liquidated Damages for Late Payment, if the parties to the contract have not agreed on the standard of liquidated damages for late repayment or payment, liquidated damages may be claimed, which can be calculated with reference to the standard for financial institutions to calculate overdue loan interest stipulated by the People's Bank of China.

2. Calculation method of liquidated damages (i.e. calculation method of overdue loan interest): 30%-50% shall be charged on the loan interest rate specified in the loan contract, but shall not exceed 4 times of the loan interest rate of the People's Bank of China. If the loan interest rate is not agreed, an additional 30%-50% will be charged on the level of the loan interest rate for the same period issued by the People's Bank of China (according to the notice of the People's Bank of China on issues related to the RMB loan interest rate).

1. If the contract does not stipulate the liability for breach of contract, it may be sued.

Paragraph 4 of Article 24 of the Interpretation of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Sales Contracts stipulates that "if the sales contract does not stipulate liquidated damages for late payment or the method of calculating such liquidated damages, and the seller claims compensation for late payment losses on the grounds of the buyer's breach of contract, the people's court may calculate it based on the benchmark interest rate of the same type of RMB loan of the People's Bank of China for the same period, with reference to the standard interest rate for overdue penalty interest".

From this point of view, the principle of liability for breach of contract in Chinese law on late payment is "if there is no agreement, it is statutory". If the parties have agreed, if there is no agreement on liquidated damages or no agreement on the calculation method of liquidated damages, the seller may require the buyer to pay interest on overdue payment based on the benchmark interest rate of the same type of RMB loan of the People's Bank of China for the same period, with reference to the interest rate standard for overdue penalty interest.

2. How to calculate the overdue interest of credit?

Overdue loan interest: The general operation is to increase the penalty interest rate by 30%-50% on the basis of the original loan interest rate, and the specific algorithm depends on the different circumstances of each case.

The penalty interest rate for overdue loans (loans where the borrower fails to repay the loan on the date agreed in the contract) has been changed from the current interest rate of 2.1/10,000 per day to 30%-50% on top of the loan interest rate specified in the loan contract; If the borrower fails to use the loan for the purpose agreed in the contract, the interest rate will be increased from the current rate of 5/10,000 per day to 50%-100% of the loan interest rate specified in the loan contract.