Skip to main content

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.


Labels:

Comments

Post a Comment

Popular posts from this blog

A COMPREHENSIVE GUIDE TO APPLYING FOR A USED CAR LOAN ONLINE

In today's fast-paced world, possessing a car isn't simply an extravagance but a need. For many, a used car is a magnificent choice to satisfy their transportation needs without breaking the bank. Notwithstanding, financing a used car purchase could appear to be daunting. Fortunately, to apply for a used car loan online has become a convenient and accessible choice. Here is a comprehensive guide to navigating the process without a hitch. Understanding Used Car Loans Before jumping into the application process, it's crucial to grasp the fundamentals of used car loans. These loans are specifically designed for purchasing pre-owned vehicles. Lenders offer varying terms and interest rates based on factors like credit history, upfront installment, and the vehicle's age and condition. Preparing for the Application 1. Know Your Budget: Decide your budget by assessing your financial situation. Consider factors like a month-to-month income, existing expenses, and potential init...
Post a Comment
Read more

A COMPREHENSIVE GUIDE TO AVAILING A LOAN ONLINE

In today's fast-paced world, the ability to get financial assistance rapidly and helpfully has turned into a need for many. While, you " AVAIL A LOAN ONLINE " offers a seamless answer for meeting various financial requirements, whether it's for education, starting a business, or dealing with startling expenses. Here is a comprehensive guide to navigating the process successfully. Understanding Loan Options Prior to plunging into the online loan application process, it's crucial to understand the sorts of loans available. Whether it's personal loans, business loans, or mortgages, each fills various needs and accompanies varying interest rates and repayment terms. Assess your requirements and financial situation to decide the most suitable loan type. Research and Comparison Whenever you've recognized the kind of loan you require, research various lenders. Various financial foundations, banks, and online lenders offer loans. Compare interest rates, repaymen...
Post a Comment
Read more

GUIDE TO BUYING A USED CAR: FIGURING OUT INTEREST RATES

As of now, in the fast-paced universe of today, possessing a car is neither a luxury nor a need. While considering the practicality of purchasing a used car, the vast majority of individuals arrive at this resolution. In any case, financing such a purchase can be troublesome. This blog aims to impart information regarding the intricacies of used car loans, with a particular emphasis on the critical component of interest rates. What is a Used Car Loan? A " Used Car Loan " is a financial product designed to assist individuals with the expense of purchasing cars. A used car loan, in contrast to a conventional car loan for another vehicle, is designed to accommodate the extraordinary circumstances associated with purchasing a used automobile. Factors Influencing Used Car Loan Interest Rates 1. Credit Score: An essential part of loan applications, the credit score significantly impacts the interest rate determination process. Individuals must maintain a decent credit history bec...
Post a Comment
Read more