Whenever you take a loan, you are required to pay the Equated Monthly Installments (EMIs) within a specified time, otherwise, penalties are imposed by the bank. However, many times situations arise where paying the EMIs becomes challenging…
Buying a house or a car and taking home or car loans has become common these days. Additionally, people often take personal loans to fulfill various needs. Whenever you take a loan, you have to pay the EMI on a designated date, or else penalties are levied by the bank. However, there are times when paying the EMI becomes difficult.
If you ever face a situation where you are forced to bounce the EMI due to unforeseen circumstances, don’t worry. In such a scenario, take these 4 essential steps so that it doesn’t affect your CIBIL score, and you don’t face any problems in the future.
Meet the Bank Manager – In this regard, retired bank officer A.K. Mishra suggests that if you haven’t done so intentionally and your EMI has bounced due to sudden difficulties or adverse circumstances, you should first go to the branch where you took the loan. Meet the manager there and discuss this issue. Explain your problem and assure them that such a situation won’t arise again. If your case is valid, the issue can be resolved easily. Even if the bank imposes a penalty, it might not be too severe for you to handle.
Discuss with the CIBIL Score Representative – If you’ve bounced installments continuously for three months, your CIBIL score might be affected because the bank manager sends a report to CIBIL regarding installments bounced for three months. However, if only one or two installments have bounced, talk to the bank manager to pay those installments and request them not to send a negative report to CIBIL. Also, assure them that it won’t happen in the future. A low CIBIL score might cause trouble when you apply for a loan next time.
Apply for Holding EMI – If your problem is significant and you feel unable to pay the installment for some time due to your compulsion, you can request the manager to hold the installment by explaining your situation. After some time, when the funds are arranged, you can make the payment. This will provide you with some relief during difficult times.
Option for Arrear EMI – If your salary is delayed or you are unable to arrange funds for the EMI by the specified date and as a result, EMIs are bouncing, you can discuss with the manager for arrear EMIs. The due date for installment payments is usually at the beginning of the month, known as advance EMI. Most loan applicants are given the option for advance EMIs. However, if you prefer, you can also opt for arrear EMIs, where you pay your installment at the end of the month.
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Information Source: Internet
