Question Detail

What are the consequences of defaulting loan EMI?

By kuldeep patwa On May 30 2017 11:53PM


Answered by info@realtymedia.in

Low credit rating: Defaulting your EMIs will adversely affect your chances of getting another loan in future. Every loan and credit card transaction is tracked by Credit Information Bureau (India) Limited (CIBIL); and defaulting even a single EMI will affect your credit rating, which can make your chances of getting a loan slim.
Recovery agents: Banks will consistently follow up on your EMI delay, which can be very stressful. Some banks employ external means such as recovery agents to get the payments. It's best to avoid a situation where an agent comes knocking at your door enquiring about repayment delays. This could turn out to be a very embarrassing situation. It's best to plan your finances with some foresight before applying for your loan.
So, when you decide to apply for a loan, don't forget to take into account your other financial commitments such as monthly household expenses, other existing loan EMIs, money for emergencies, etc. Ensure you have enough money saved (atleast three months EMI) to avoid a strain on your monthly budget. Take utmost care to avoid defaulting on your EMIs.

 

Jun 1 2017 10:42PM