Think It Is Okay To Miss Your Personal Loan EMI? Know the Consequences Beforehand
Think It Is Okay To Miss Your Personal Loan EMI? Know the Consequences Beforehand
We constantly face curveballs in life. Unfortunately, not all of us are expert batsmen who can get a hit every time. A potential surprise is missing a payment on your Indian bank personal loan. This can occur for any number of reasons, from a lack of resources to just forgetting to make a payment on time, but the remedy is always to act sooner rather than later.
The number of people using personal loans to pay for large purchases, trips, and debt consolidation has been quickly rising over the last several years. Personal loans are unsecured loans that require little verification and are disbursed pretty quickly. Its repayment tenure spans from one year to five years. Customers have the choice of selecting the loan period that would be most comfortable for them thanks to banks and other lending institutions. Even though a borrower selects a repayment period and EMI option that they are most comfortable with, there are some circumstances where the borrower may struggle to pay back the EMI for a particular month. While skipping one or two EMI payments may not seem like a big deal and levied charges on your statement checked via Indian bank mini statement number are not that high, it does have a negative impact on your CIBIL score and other important things. It’s critical to understand the steps you should take to stop your debts from getting out of control if you just missed an EMI payment or are having trouble making your loan payments. But first, let’s discover what happens if you forget to pay an EMI.
What exactly happens if I miss a personal loan EMI payment?
Equated Monthly Installments, often known as EMIs, are one of the most effective payment options for paying off a loan balance within the allotted time frame. However, the interest rates on these loans are comparatively higher. As a result, it’s a good idea to always figure out the EMI using an Indian bank personal loan EMI calculator and if you have ever missed the payment, check out the charges via the Indian bank mini statement number. This will make it easier for you to comprehend how much you must pay toward the principal each month for the duration of the loan and how much it will be charged in case you miss one. Now, if for some reason there are not enough funds in your account, your EMI will not be successfully debited on the due date. You will then get a notice as a reminder informing you to clear your dues. In some cases, it is seen that financial institutions offer a grace period to the individual to clear their dues however, you will be added to the defaulter’s list incase you miss paying your EMI for 60-90 days.
mpact of Defaulting on EMI
Credit score: A drop in your credit score is the most evident effect of missing loan instalments and failure to make EMI payments on time will negatively impact your repayment history. A default will be reported by the bank to the credit bureaus, which will also have a negative impact on your credit score. Most lending institutions need applicants to have a CIBIL s
score of 750 or higher in order to be considered for a loan.
Higher interest rates: If you default on an Indian bank personal loan, the bank may start charging you a higher interest rate since they will view you as a riskier borrower.
Affects Creditworthiness: A borrower’s credit report includes comments on their payment history in addition to their credit score. The comments regarding payment defaults in the credit report are frequently the reason for an Indian bank personal loan rejection, even when the borrower has a CIBIL score above 750. The majority of lenders see these borrowers as problematic borrowers who won’t be able to adhere to the loan repayment requirements when they see these comments in the credit report.
Penalties: For people who have skipped their EMI payments, many banks and financial organisations charge late fees as a form of punishment. The fee varies, but it often ranges between 1% and 2% of the EMI that is due. Check your bank statement
to find out whether they have charged any charges via the Indian bank mini statement number.
Recovery personnel: When the default term has gone past 90 days, banks and other financial institutions may occasionally dispatch agents to reclaim the Indian bank personal loan money as a last resort. Before the loan account is designated as an NPA, the bank first gives the borrower a 60-day notice. Since it can be highly stressful, it is advisable to stay away from this circumstance.
What Can You Do To Get Out Of Such a Situation?
So, if you ever find yourself in a situation like this, do the following:
Never be afraid to seek assistance: Contact your bank and ask to talk with your personal loan officer if you haven’t made your EMI payment. Describe your circumstances. Your bank can agree to defer your payment and let you pay your due in the following month using a mobile banking app if it’s a serious issue,
, like a medical emergency in your family. But you must promise to make both EMI payments on schedule. A minor late payment fee might be assessed by the bank. Also, check whether the bank has levied any charges via the Indian bank mini statement number.
Request an extension: If you believe that a long-term problem, such as a salary cut or a job loss, would prevent you from paying your EMI in the next few months, it is still advisable to speak with bank executives and try to find a lasting solution. You can ask to have your plan reorganised. You’ll feel some relief as a result, and you can start moving forward starting the following month.
Check out your other resources: The next best course of action is to take a loan against your personal assets, such as gold, a fixed deposit, or personal insurance. Check for loans against investments or insurance. The interest rate on a secured loan secured by collateral is lower, so you can pay later.
Conclusion
If none of the aforementioned approaches is successful, ask your
, like a medical emergency in your family. But you must promise to make both EMI payments on schedule. A minor late payment fee might be assessed by the bank. Also, check whether the bank has levied any charges via the Indian bank mini statement number.
Request an extension: If you believe that a long-term problem, such as a salary cut or a job loss, would prevent you from paying your EMI in the next few months, it is still advisable to speak with bank executives and try to find a lasting solution. You can ask to have your plan reorganised. You’ll feel some relief as a result, and you can start moving forward starting the following month.
Check out your other resources: The next best course of action is to take a loan against your personal assets, such as gold, a fixed deposit, or personal insurance. Check for loans against investments or insurance. The interest rate on a secured loan secured by collateral is lower, so you can pay later.
Conclusion
If none of the aforementioned approaches is successful, ask your
, like a medical emergency in your family. But you must promise to make both EMI payments on schedule. A minor late payment fee might be assessed by the bank. Also, check whether the bank has levied any charges via the Indian bank mini statement number.
Request an extension: If you believe that a long-term problem, such as a salary cut or a job loss, would prevent you from paying your EMI in the next few months, it is still advisable to speak with bank executives and try to find a lasting solution. You can ask to have your plan reorganised. You’ll feel some relief as a result, and you can start moving forward starting the following month.
Check out your other resources: The next best course of action is to take a loan against your personal assets, such as gold, a fixed deposit, or personal insurance. Check for loans against investments or insurance. The interest rate on a secured loan secured by collateral is lower, so you can pay later.
Conclusion
If none of the aforementioned approaches is successful, ask your
, like a medical emergency in your family. But you must promise to make both EMI payments on schedule. A minor late payment fee might be assessed by the bank. Also, check whether the bank has levied any charges via the Indian bank mini statement number.
Request an extension: If you believe that a long-term problem, such as a salary cut or a job loss, would prevent you from paying your EMI in the next few months, it is still advisable to speak with bank executives and try to find a lasting solution. You can ask to have your plan reorganised. You’ll feel some relief as a result, and you can start moving forward starting the following month.
Check out your other resources: The next best course of action is to take a loan against your personal assets, such as gold, a fixed deposit, or personal insurance. Check for loans against investments or insurance. The interest rate on a secured loan secured by collateral is lower, so you can pay later.
Conclusion
If none of the aforementioned approaches is successful, ask your
