What Happens If You Miss Your Home Loan Payment? Know details
What happens if you miss an EMI on your home loan? Learn the rules and the implications: Everyone fears for their EMI missing. Here, the question arise bank will declare me a defaulter, or whether my credit score (CIBIL) will be affected. However, the reality is that missing an EMI isn’t a major crisis, but ignoring it can prove costly.
The Impact of the First Few Days: As soon as the EMI due date approaches, your loan account is marked as overdue in the bank’s system. Initially, you’ll receive automated messages and emails. After a few days, you may receive a call from the bank’s collection team. The bank charges a late payment fee or penal interest. This amount isn’t significant, but it increases as the delay continues. During this time, don’t ignore the bank’s phone calls. Explain clearly the reason for the delay and when you’ll be able to pay. The bank just wants to know if it’s a mistake or if you’re seriously short on money.
When does it affect your credit score? Most people think that even a single day’s delay will lower your CIBIL score, but that’s not true. Banks typically don’t report delays to credit bureaus unless they exceed 30 days. If you make your payment before the end of the month, your credit score is often unaffected. Banks and credit bureaus view a one-time mistake as a “stain,” but if it happens repeatedly, your score can drop rapidly.
What to do if you miss an EMI? If you miss an EMI, call your bank and inform them. Your honesty strengthens your connection with the bank. Check if the error was technical, such as an auto-debit failure, or financial. Correct it for the future and arrange the money as soon as possible to pay it off, including the penalty. Missing a home loan EMI isn’t a big deal, but rather a warning. If you correct it immediately, the loss is minimal.
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