Unable to Pay Home Loan EMIs


Purchase of home loan is an important aspect considering the necessity of owning a house. Once the home loan is disbursed, you need to pay theUnable to Pay Home Loan EMIs EMIs on time till the loan gets repaid over a time frame. However, during emergencies and unanticipated events like loss of job it gets difficult to pay the home loans and one may stop paying the EMIs. Therefore, in this article we present to you some simple steps to follow during such times of uncertainties and consequences you can face when you skip or don’t pay your EMIs.

Unable to Pay Home Loan EMIs | Do I become a loan defaulter if I don’t pay some of the EMIs?

If you don’t pay EMI for once, banks won’t consider you as a loan defaulter. If you skip your EMIs thrice in a consecutive manner then bank will send you reminders of your due payment. If you fail to respond as per their requirements then you will be considered as a loan defaulter.

Unable to Pay Home Loan EMIs | What are the consequences of becoming a loan defaulter?

Banks begin the process to take over one’s property once he/she is found to be a loan defaulter through auctions or other means till they get their loan amount. This also hampers one’s credit score which can debar you from taking any loans further.

Unable to Pay Home Loan EMIs | Do I have any options in the case of a loan defaulter?

In such a case, it’s always advisable to negotiate with your lender. Banks will readily discuss with you on this matter. You should keep your past documents of the cleared EMIs with you while you converse with the bank. You will have the following options in hand-

Unable to Pay Home Loan EMIs | You can ask for more time

You can ask for more time from the bank to continue paying your EMIs. You should place before them the reason for failure to pay the EMI amount like a lost job or other financial reasons. Bank may agree and grant you a grace period charging a penalty.

Unable to Pay Home Loan EMIs | You can ask to refinance your house loan

Due to increase in the interest rates, one may be unable to pay his/her EMIs. Therefore, that person can ask the bank to refinance his/her home loan. Banks can agree to increase the loan’s tenure which would lessen the burden of EMI but the amount paid will be more. However, it’s better than losing the property.

Unable to Pay Home Loan EMIs | Take advice from the counselors

Various counseling bases are available for such issues from where one can take help from. The counselors will give an optimum solution as per your convenience with minimum loss. For example, the credit counseling base of Dena Bank works to help such people with issues over EMI payments.

Unable to Pay Home Loan EMIs | You can liquidate the investments

The last option available is to liquidate one’s investments such as fixed deposits and mutual funds in order to generate the amount for EMI payments.

Hence, now you know  However, you can always avoid such things if you maintain an emergency fund through regular savings and reducing your expenses. Also an individual health cover and critical illness plan along with rider plans helps during emergencies.


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