Missed an EMI? One delay can crash your credit score, bring legal heat, and raise your loan cost. Learn why timely payment is non-negotiable in 2025.
One Missed EMI, Long-Term Trouble
In the fast-paced financial world of today, skipping even one EMI can be like dropping a small pebble – but it creates big ripples. With the ever-increasing trend of personal and home loans in every Indian home, lenders in the country are keenly looking at repayment patterns. A delayed EMI is not just losing time, it’s starting a storm that can hit on and off for years.
Credit Score Takes the First Blow
A single missed EMI payment can lower your credit score by 50 to 70 points. It’s not just a little bit of damage, either — it’s enough to make lenders furrow their brows the next time you apply for credit. Other loans in the future are more difficult to obtain, and those that are approved come with a painful interest rate. Trust in finance takes years to build, and seconds (or one EMI) to break.
Late Fees & Penalty Interest Add to the Fire
Late fees are like compound interest’s evil cousin. Skip an EMI and banks/NBFCs haul and hit you with a 1–2% penal charge. Top that with a growing stack of penalty interest, and you have a loan that ain’t what it used to be. That little delay? All it did was make your total debt more expensive than anticipated.
From Delay to Default: The Dangerous 90-Day Line
If your EMIs do not get paid for 90 days then your loan is classified as an NPA (Non-Performing Asset). That’s a red flag that lingers on your financial report card for years. You’re not a trusted borrower — it may be that banks begin avoiding you like they would the plague.
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Legal Warnings and Recovery Calls Are Next
If you go 60 days past due, don’t be shocked if you begin receiving calls from recovery agents. Surpass that and banks might turn up at your doorstep with legal notices under the Negotiable Instruments Act, of 1881. What began as a missed deadline could evolve into a courtroom drama.
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Pay On Time, Stay Stress-Free
Paying your EMI on time is not only a good practice, but it is your shield in today’s credit-driven world. You let it slide once, and then it’s no longer just about money — you’re pushing back penalties, creditors, and the lasting financial bruises. Don’t risk it. Pay on time, every time.
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