Home Loan :- What if the EMI of the house is not paid on time? After the first EMI default, the bank will send you a payment reminder via SMS and email. The reminder also includes a link through which you can make an online payment. Home loan default can have a serious impact on your present and future. It affects your life, making it difficult for you to take a loan in future if you miss three home loan EMI’s in a row due to some reason. It is not a big deal that in such a situation the bank only warns the customers, but if you do not pay the EMI for the third consecutive month, then problems may arise for you.
If the EMI is not paid for three consecutive months, the customer is put in the defaulter list.
What happens if I miss the first EMI?
In case you miss the first EMI, after the First EMI default, the bank will send you a payment reminder via SMS email. The reminder may also include a link through which you can make the payment online, due to the delay, this EMI Also, you can levy a penalty of 1% to 2% on the outstanding loan amount. Once you make this payment, your loan account account resumes as before.
What happens if I miss the Second EMI?
In the event of second EMI default, the bank will issue a warning to you and ask you to pay the EMI amount along with penalty charges immediately. Depending on your financial situation, you may be given some time to make this payment, however the second default will be sent to the bank. Will alert you if you are in such a situation then pay your EMI as soon as possible, quick EMI settlement to avoid any financial risk in future.
What happens if I miss the Third EMI?
If you miss the payment for more than 90 days or more than 3 months, the bank will start the process of auctioning your house. In this situation you will be declared a defaulter, the bank will mark your loan as NPA. Your credit score will also start declining rapidly. You will be declared bankrupt and your house will be auctioned.