Common use of Compound interest Clause in Contracts

Compound interest. Where the borrower fails to pay the interest on due date, the lender will charge compound interest on a monthly (quarterly/monthly) basis as of the date of failure to pay on the due date. Interest payable includes: interest payable during the loan period (including penalty interest for default) and interest payable after the loan is overdue (including penalty interest for late payment and penalty interest for default use).For the unpaid interest incurred during the loan period, compound interest shall be calculated at the loan execution rate as agreed in the contract before the repayment date, and compound interest shall be calculated at the overdue loan rate after the repayment date; The unpaid interest on overdue loans shall be compounded at the interest rate of overdue loans.