Common use of Penalty Interest and Compound Interest Clause in Contracts

Penalty Interest and Compound Interest. In the event that the loan under this Contract is overdue or not used for the purpose agreed herein, the lender shall have the right to charge an additional 50% penalty interest according to the loan interest under this Contract from the date of overdue. If the borrower fails to use the loan according to the purpose stipulated in the contract, the lender shall have the right to charge a penalty interest of an additional 100% according to the interest rate of the loan under the contract from the date of misappropriation. The interest (including penalty interest) paid late by the borrower shall be charged compound interest at the contract interest rate, and the penalty interest rate shall be charged compound interest after the loan is overdue.

Penalty Interest and Compound Interest. In the event that If the loan under this Contract is overdue or not used for the purpose agreed hereinoverdue, the lender shall have the right to charge an additional 50% penalty interest according to on the loan interest under this Contract contract from the date of overdue. ; If the borrower fails to use the loan according to the purpose stipulated agreed in the contract, the lender shall have has the right to charge a penalty interest of an additional 100% according to the interest rate of the loan under the contract Contract from the date of misappropriation. The interest (including penalty interest) paid late by the borrower shall be charged compound interest compounded at the contract interest raterate of this contract, and the penalty interest rate shall be charged compound interest compounded after the loan is overdue.