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Of course, a home loan<\/a> is a convenient way to finance your new house. However, since housing loans spread over a long tenure, staying on track with EMI payments can be challenging. You may miss paying your EMI due to unexpected situations, such as job loss, medical emergencies, etc.<\/p>\n\n\n\n This article will help you understand what happens when you miss an EMI and how to act in this situation.<\/p>\n\n\n\n #1 Late payment penalty<\/p>\n\n\n\n You are charged a late fee, interest penalty, and other penalties depending on your lender\u2019s policies. The late payment fee is usually 1-2% of the due EMI amount<\/a>. If you miss out on a series of EMI payments, this amount can increase significantly.<\/p>\n\n\n\n #2 Decrease in CIBIL or score<\/p>\n\n\n\n Your CIBIL or credit score is based on your repayment records and credit history. Thus, when you fail to pay your EMIs on time, it reflects in your credit score. Failing to timely repay your housing loan EMI<\/a> can lower your score by 50-70 points. If your CIBIL score<\/a> drops below 750, it can be challenging for you to qualify for loans in future.<\/p>\n\n\n\n #3 Fewer chances of a loan balance transfer<\/p>\n\n\n\n If your EMI repayment record shows missed payments, lenders will consider you a high-risk borrower. So, if you\u2019re planning to switch lenders to avail of lower home loan interest rates, prospective lenders might be reluctant.<\/p>\n\n\n\n #4 Risk of being labelled as an NPA<\/p>\n\n\n\n If you fail to clear your dues after 90 days of your last payment, your lending institution marks your loan as a Non-Performing Asset (NPA)<\/a> and sends you a legal notice regarding the dues. If you fail to pay at this stage, your lender will send you a notice stating that your property will be auctioned to recover unpaid dues.<\/p>\n\n\n\n First of all, don\u2019t worry. If you missed paying an EMI within 90 days of the last payment, it\u2019d be considered a minor default. You can recover by paying off the outstanding dues as quickly as possible. You can also opt for partial payments. Under any circumstances, do not let it accumulate.<\/p>\n\n\n\n If you lack the funds to complete the payment immediately, you may take one of these routes:<\/p>\n\n\n\n Missing EMIs can lead to serious home loan default consequences in India, especially if delays continue over several months.<\/p>\n\n\n\n The timeline of default follows a structured process. After one missed EMI, banks usually send reminders and apply late fees. But what happens if home loan EMI is not paid more than once?<\/p>\n\n\n\n After two to three missed EMIs, follow-ups become more frequent and the delay is reported to credit bureaus. This stage clearly reflects early home loan default consequences in India.<\/p>\n\n\n\n If EMIs remain unpaid for over 90 days, the loan may be classified as a Non-Performing Asset (NPA). Recovery notices are then issued, and restructuring options may be offered. Continued non-payment can result in legal action and asset recovery, highlighting serious home loan default consequences in India. Acting early helps minimise financial and legal impact.<\/p>\n\n\n\n In conclusion<\/p>\n\n\n\n Make sure that your finances are sound before availing of a housing loan. EMI repayment should not deplete your savings and emergency funds. If you are looking for affordable home loan offerings, Tata Capital<\/a> is here for you, with attractive interest rates and flexible repayment methods. Check our home loan eligibility<\/a> criteria and apply today!<\/p>\n\n\n\nWhat Happens if Home Loan EMI is Not Paid?<\/strong><\/h2>\n\n\n\n
What to Do If Home Loan EMI Is Missed?<\/strong><\/h2>\n\n\n\n
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Home Loan Default Consequences in India: Legal Steps<\/strong><\/h2>\n\n\n\n
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Timeline of Home Loan Default: What Lenders Do After Multiple Missed EMIs<\/strong><\/h2>\n\n\n\n