Bank Wins CNY 105,255.86 Loan Repayment Judgment
A court in Eastern China City has ruled in favor of a bank seeking repayment of a defaulted loan. The dispute arose when two borrowers failed to repay a 160,000 CNY credit loan used for housing purchase. The court ordered the defendants to return the outstanding principal and accrued interest totaling 105,255.86 CNY, plus additional interest for delayed payment.
The case involved a bank (the plaintiff) and two individual borrowers, Mr. Han and Mr. Qi. On December 2, 2009, the parties signed a personal loan and guarantee contract. The bank granted a short-term credit loan of 160,000 CNY at an annual interest rate of 4.779 percent. The loan term was 12 months, ending on December 2, 2010. Repayment was structured as monthly interest payments with a one-time principal repayment at maturity. The borrowers used the funds to purchase a group housing property. After the loan was disbursed, the defendants made only partial repayments. By August 21, 2011, the outstanding principal and interest amounted to 105,255.86 CNY. The bank demanded payment but did not receive full satisfaction, leading to the lawsuit.
The case was heard in an open court session. The bank appeared through its authorized representative. Mr. Han attended the hearing and acknowledged the facts and the amount owed, but stated he lacked immediate funds and could only repay after March. Mr. Qi was properly served with a summons but did not appear without justification, resulting in a default judgment against him. The court considered documentary evidence, including the signed loan contract, payment records, and the parties’ statements during trial. All supporting documents were admitted into the case record.
The court found that the loan contract was a genuine expression of the parties’ intentions and did not violate any mandatory legal provisions. Therefore, the contract was valid and enforceable. The bank had fulfilled its obligation by disbursing the loan. Upon maturity, the defendants failed to repay the principal and interest as agreed. This breach was the primary cause of the dispute. The court held that the bank’s claim for repayment of the outstanding principal and interest was legally justified.
According to relevant law, specifically Articles 205, 206, and 209 of the Contract Law of the People’s Republic of China, a borrower must repay the principal and pay interest according to the contract terms. Since the defendants defaulted, the court also applied Article 229 of the Civil Procedure Law, which allows for an increased interest rate on delayed payments. The court reasoned that the borrowers’ obligation to repay extended beyond the contract maturity date, and they must compensate the bank for the delay.
In this case, the court ordered Mr. Han and Mr. Qi to jointly repay the bank 105,255.86 CNY in principal and interest, plus overdue interest calculated from August 21, 2011 until the date of full payment. The repayment must be made within ten days of the judgment taking effect. The defendants were also ordered to bear the court filing fee of 2,405 CNY, which the bank had already paid. This judgment is subject to appeal within 15 days of service. The case serves as a reminder that borrowers who default on loan obligations face court-ordered repayment plus additional costs and interest.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.