Missing an EMI (Equated Monthly Installment) on your home loan can be stressful—but it’s not always a disaster if handled correctly. Whether it’s your first miss or a recurring issue, understanding how banks and credit bureaus treat these situations is crucial to safeguarding your financial health.
Let’s break it down for you.
📌 What Happens If You Miss One EMI?
If you miss one EMI, here’s what generally happens:
- ✅ Penalty Charges: Most banks charge a penalty of ₹40 to ₹500 for a missed EMI.
- ✅ Grace Period: According to RBI guidelines, your CIBIL score won’t be affected immediately. You have a 30-day window (TAT) to make the payment.
- ❗ Interest Accrues: You may have to pay extra interest on the missed amount.
- ❗ Bank Reminder: You’ll likely get SMS or email reminders from your lender.
🟢 Important: If you repay the missed EMI within 30 days, your credit report will likely remain unaffected.
🔴 What If You Miss Two Consecutive EMIs?
This is where things start to get risky.
- ❌ CIBIL Score Impact: After 30 days, the lender may report the missed payments to the credit bureau.
- 🔻 Your CIBIL score can drop significantly, affecting your ability to get loans or credit cards in the future.
- 🚩 You may fall into the “Red Flag Zone”, making you a high-risk borrower in the eyes of banks.
🛑 Long-Term Consequences of Repeated EMI Defaults
If EMI default becomes a habit, it could result in:
- 🏦 Loan Recall or Foreclosure by the bank
- 🧾 Legal action for recovery
- 🔐 Property repossession (in worst-case scenarios)
- 🧨 Difficulty in securing future loans, insurance, or even job background checks
💡 Tips to Avoid Missing Your EMI
- ✅ Set Auto-Debit from your salary account
- 📆 Use a calendar reminder
- 💬 Talk to your bank immediately if you foresee a payment issue
- 🔄 Restructure your loan if your EMIs are too high
💬 Need Help with EMI Planning or Loan Management?
At Shivafinz, we understand life happens. Whether you’re stuck with EMI delays, struggling with loan rejection, or confused about your credit score—we’re here to help you navigate it all.
📲 Reach out to our experts today for personalized financial support.