Repayment of home loan is a primary expense in Indian household commonly. But there are times when we are in a sea of financial troubles and there seems to be no way out. Take COVID for example, it didn’t only gave us a hard time physically and mentally but financially as well. People lost their jobs, businesses closed and financial strains burdened all of us. This is when home loan EMI must have suffered. I know there was a moratorium period but let’s face it, it wasn’t enough. At least not in my case. I had a good talk with my financial advisor and he warned me of a few things when I asked him what happens if home loan EMI is not paid in time. Here is what he said:
What will happen if home loan EMI not paid?Bank will levy penalty, late fee or a pental interest of 1%-2% of the EMI.
In some cases banks levy penal interest on entire overdue amount for the period of default in addition to late fee charges
Missing an EMI may impact your credit score adversely, thereby harming it and bringing you down by 50-70 points
If you miss an EMI and the payment was slated within 90 days of previous EMI, there is a window of rectification, you can take timely corrective action and emerge as a minor defaulter, nothing major
If you default on payments regularly then there is no option but the bank will auction off your property under SARFAESI Act, 2002.
If you are facing difficulties in repaying a home loan or paying EMI then you can reach out to your lender and look for a solution.
Know what is SARFAESI Act hereSo, there you have it this is what happens if home loan EMI is not paid.
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Authors Of The Question
What happens if home loan EMI is not paid?
RAJESH
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1 Answers
3 Year
2021-09-17T15:49:56+00:00 2021-09-17T16:47:35+00:00Comment
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