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Home loan EMI may sometimes be missed suddenly, but its impact is deeper than expected. Late payment not only adds additional charges but also directly affects the credit score and future borrowing capacity. Therefore, missing EMI is not a minor mistake, but a matter that requires caution and timely action.
New Delhi. Home loan is a big long term loan, and paying EMI on time is its most important condition. But sometimes EMI is missed due to sudden medical expenses, budget disruption or some other reason. Once there is a delay, the bank does not immediately take over your house, but its effects are felt in many ways. The first loss due to missing EMI is on the pocket, and the second loss is on the credit history.
Direct impact on late fees and credit score
The bank immediately imposes penalty on late payment of EMI. The amount may seem small, but it throws your financial planning into disarray and reminds you that the lender records every delay. Missing EMI in a big loan like home loan is considered a big threat to the credit profile. As soon as the bank reports it to the credit bureaus, your score starts coming down. If such mistakes happen again and again, it may be difficult to get a new loan or credit card in future.
Interest will increase and installments may take longer
If the EMI is missed, the amount increases further, but the interest continues to be added on it. Gradually this additional amount makes the entire loan expensive. Many people later realize that due to missing EMI, their loan has become longer and more expensive than before. Therefore, even a small delay can create a big burden in the future.
Bank strict on continuous default
The bank does not take strict action on just one EMI, but if three consecutive EMIs are missed, the loan can be declared NPA i.e. non-performing asset. Then a recovery notice is sent and if the situation does not improve, the bank also gets the right to sell the property. If you know in advance that there may be a delay in paying the EMI, then inform the bank immediately. Most lenders find solutions through negotiations and good behavior reduces risks in the future.
