What to do if you miss your loan EMI payment

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What to do if you miss your loan EMI payment

Are you one of those who is missing Loan EMI Payment? Well, this blog is the right place to help you!

In today’s life taking a loan has become very easy and convenient for many people who need money to fulfil their desires. Along with commercial banks (private and public sector), non-banking financial corporations (NBFCs) have made it very convenient for people to get loans to meet their daily requirements by just checking the principal amount & interest rates. There are many other online lenders or websites that lend money through digital means within minutes or hours.

Borrowers (self-employed and salaried) take out loans from their preferred lenders without considering alternatives. The only drawback here is that there is a danger of the borrower falling into a debt trap if they ignore repayment.

When taking out an unsecured loan like a personal loan, one should do so when needed or in an emergency rather than fulfilling the desires. They are easily available both online and offline, without too much complication involved.

Making loan EMI payments on time is essential in order to avoid complications. If you avoid paying your loan on time, you are considered a loan defaulter. Every lender, whether a bank or a non-banking institution, has its own ways and conditions for collection of unsecured loans.

What does it mean when you miss a loan EMI payment?

If you are not paying your loan EMI on time, you are in default. However, you may be fortunate enough, if your bank or lender is providing you with a grace period on your loan that starts right after you have missed your payment. In contrast, you may be charged a late fee if you miss your due dates. Another major impact of not missing loan EMI payments is the negative impact on your credit score. It may take, several years to recover your score, only if you make the payment early.

When do you realize that you will miss an EMI payment on your loan?

After lending money and before paying the payment, there is a time gap given to you, to make adjustments for the loan EMI payment on their due date. But you fail to anticipate your financial consequences and end up being in default.

Here are the consequences of not making your loan payment.

It may weaken your credit score:-

A credit score is a three-digit number used to evaluate your creditworthiness. It is usually easier to obtain a loan for those who have good credit scores. Avoiding or missing your EMI payment can hammer your credit score and eliminate the chances of getting a new loan in the future. To keep your credit score high, timely payments are the answer.

Added extra fees:-

Missing your loan EMI payment in the case of financial default will only result in extra charges. Some banks may provide you with a grace period, but the chances are low. The additional charges can either be non-payment penalties or bounce charges. Non- payment charges are those charges when you don’t pay the EMI. If your EMI cannot be automatically transferred to your account due to insufficient funds, bounces charges are applied.

What are the ways you can avoid missing loan EMI payments?

People who are trapped in a problem of paying EMI can understand that it may have a bad impact on you. Missing even a single payment can have a huge impact on your life. Once you make an assumption about whether you will be able to pay the EMIs on time or not, these following tips will help you to plan your finance to make missing loan EMI payment

Consider your payment cycle

If you suspect that there will be a delay in your upcoming EMI payment, you need to immediately speak to your lender or bank and make them understand your poor financial condition.

Check if your lender is ready to stop or pause EMI temporarily. Otherwise, you can request the lender to reduce the EMI, until you are unable to repay it.

Request to pause your EMI temporarily

If you are having loss of income due to layoff or loss of employment, you can approach your bank for help. People who suffer a major loss neglect to pay the EMI and end up alone without a solution. If you approach banks, they may be able to temporarily waive your EMI until you do not find a job. You can continue to repay your EMI once you are able to do so.

Taking financial advice

By asking for professional assistance, you will be able to make missed EMI payments by setting up a lower amount than you actually owe to your lender and without borrowing, facilitating simple and easy repayment of your EMI’s and avoiding major problems.

Consolidating your loan

You might have multiple loans that remain unpaid. Sometimes, you may end up with nothing. A consolidation loan may help you pay off your loan EMIs in one go. Consolidation of your unpaid loan means taking a new loan to repay the unpaid loan. It involves the risk of falling back into debt under financial pressure. Therefore, it is necessary to overlook it and opt for another method of making EMI payments

Taking help from friends and family

In emergency situations, you may have no choice but to borrow money. In this situation, you may ask your friends and family to help you repay your EMI. This is a more informal way to ask for help, since there are no additional fees involved. Once you have become more financially stable, you can pay back your friends and family members.


Understanding your finances carefully is necessary before opting for any kind of loan. We understand that there are many easy ways to borrow money, but it is also a red sign of a debt trap. Generally, if you can afford to pay back your EMI, then you should only take out a loan.

The first step is to evaluate your financial situation and decide if you can afford this or if you have a backup plan just in case you lose your job.

if you’re on the verge of missing your loan EMI payment, you can rely on our Debt Management Plan that can provide you with a repayment plan without borrowing extra money or loans.

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