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WHAT TO DO AFTER MISSING YOUR LOAN EMI?

It is universal truth that life is full of certainties and nobody can predict when unplanned expenses will strike them. However, such expenses might ruin your monthly budget bit it also makes you to default on your loan EMIs. Whether you don’t have enough funds to pay your installments but sooner you act on, it would be better for your financial health. Therefore, defaulting on your monthly installments will have repercussions on your credit profile.

When you "Apply For Loan" with specific lending institution, they will keep you updated about the EMIs whether it’s paid or missed. If you don’t have sufficient funds in your bank account and EMI can’t be deducted from your account, then you could receive an email or call from lender about the failed EMI payment or you would be given with additional time to pay the installment.

Now, if you are in an uncomfortable situation of defaulting on monthly installments, then here are some steps that you can follow to avoid the negative impact on your credit profile:

  • Talk to your lender: It is the first and important step to take that telling your lender about the reason of missing payments such as any delay in salary or medical emergency. Then your loan officer will ask you to pay the EMI in subsequent month. However, make sure to pay the both EMIs on time and you may have to pay the penalty charges for the late payment.
  • Seek a loan extension: If you are facing any untoward situation like job loss or suffering from medical urgency where you feel that repaying an EMI would be difficult for you in the upcoming months then ask you lender for viable remedy such as loan extension or restructuring the loan and so forth.
  • Mobilize other assets for repayment: When you feel an issue in repayment of loan then you could seek a secured loan against any personal asset or investment such as loan against gold, loan against property, loan against any fixed deposit. As a new loan with collateral would carry a lower rate of interest, so it will be easy for you to pay the pending EMIs with such amount.
  • Loan settlement: If nothing works according to your ease and you can’t see other way out then ask your lender about the loan settlement. However, it is not the best option and not an easy too but your lender may consider it for a genuine reason. Therefore, reach your lender to repay the lump sum amount of loan and they will consider your loan as settled but it will adversely affect your credit report.

When you think to "Apply For Loan Online" or offline, then avail the amount that you can afford to repay easily. Go for the online EMI calculator present on different lending platforms to know your installment amount before getting a loan. Consider your financial planning along with loan cost and stay disciplined to ensure timely repayments. In case of default, never feel shy in discussing the situation with lender.


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