EMI Bounce: If you are not able to repay your personal loan EMI, then know these 5 serious disadvantages and measures to escape

News India Live, Digital Desk: Emi bounce: Nowadays taking personal loan has become as easy as it has become difficult to repay it. Suddenly the job goes away, if a medical emergency comes, or if there is any other big trouble, then repaying the EMI of the loan becomes a big headache. But if you are late in repaying your personal loan EMI, then be careful! Ignoring it can prove to be a very expensive mistake for you, which will not only be heavy on your pocket but will also spoil your future financial credit.

What happens when EMI bounces and what troubles can occur?

If you are thinking that there is only a delay of a few days, then you are wrong. EMI bounces have many serious consequences:

1. Direct attack on credit score: This is the biggest disadvantage. Each of your EMI information goes to Credit Bureau (Cibil, Equifax, Experian etc.). If the EMI bounces, your credit score immediately falls. Bad credit score means that in future you will find it very difficult to get another loan, credit card, or home loan.

2. Penalty and Additional Fee: Every time the EMI bounces, the bank will impose a fine on you. This fine can range from a few hundred rupees to a thousand rupees, and it will be different from your EMI. It depends on the bank how much he charges.

3. Interest rate rise: Many banks are conditioned in loan agreement that if your EMI does not come on time, additional interest will be imposed on the outstanding amount.

4. Constant phone calls and mental stress: As soon as EMI bounces, you will start getting calls from the bank continuously. Recovery agents will bother you again and again, which will give you mental stress.

5. Legal action warning: If you continuously fail to repay EMI, the bank may warn you of legal action. This can become a very difficult situation for you.

So what to do if there is difficulty in repaying EMI? These are remedies:

If you are unable to repay your EMI for any reason, do not hide nor panic. Explain this to the bank and open the path of conversation.

1. Talk to the bank immediately: Tell your situation to the bank honestly. Banks are often ready to help customers.

2. Changes in Payment Plan (EMI restructuring): You can request the bank to reduce your EMI amount, but the loan duration will increase for this.

3. Loan duration (Tenure Extension): You can request the bank to extend the loan duration. This will reduce your monthly EMI, even if the total interest increases slightly.

4. Moratorium Period: Under certain circumstances (eg epidemic), banks may give you the defense of not paying EMI for some time, which is called mortorium. It is rare and it also attracts interest.

5. Asset liquidation: If there is no other way, consider repaying the loan by selling any of your assets (such as any old property, car or gold), so that your credit score and future are safe.

Remember, the bank’s purpose is to collect your loan. If you cooperate, they can help solve your problem. To take honesty and timely action, the best way to avoid the big loss of EMI bounce!

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