Loan Default: Borrower Ordered to Repay 330,000 Yuan Principal Plus 1% Monthly Interest

A court in eastern China has ordered a borrower to repay 330,000 yuan in principal plus interest after he failed to honor a repayment schedule promised over two years earlier.

On December 18, 2009, Mr. Hong borrowed 330,000 yuan from Mr. Shi for business working capital. The promissory note specified monthly interest at 1 percent, payable monthly, with principal repayment in installments by June 2011.

Despite repeated demands, Mr. Hong paid interest only through February 3, 2012, and never repaid any principal. He did not appear at the hearing.

The court found the loan relationship valid and enforceable. Mr. Hong was ordered to repay the full principal of 330,000 yuan plus interest at 1 percent monthly from February 4, 2012 until payment.

The case acceptance fee of 7,500 yuan, reduced to 3,750 yuan for summary procedure, was assessed against the defendant.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.