Life is full of unpredictable events. Thus, anyone can need money in order to overcome financial instability. In order to cope up with money related problems, everybody prefers to get a personal loan. A personal loan is an unsecured service that means you don’t have to pledge anything to the bank as security, unlike other services. In fact, This loan is given totally on the basis of your income and your credit history.
What if you lose your job during the loan period?
Unfortunately, even if you lose the job, on the basis of which you availed the loan, even then you will have to return the amount of loan to the bank or non-banking financial company. The reason behind this is that, once you avail financial assistance from the lending institutions, it is the responsibility of the loan seeker to repay the debts by any means. Thus, the status of your job is not a concern for the bank once they have approved your loan.
However, If you do not repay the loan amount, legal action can be taken against you. Hence, Eventually, you will have to return the loan to the bank. Besides this, it will also affect your CIBIL score negatively. Therefore, an applicant should take a loan which they can fulfill in any unfavorable condition.
Rather than making excuses to the lender for not returning your loan, it is better to find a new job and pay the EMI’s of your loan. Because, eventually, you will have to repay it. Another way is that you can arrange money from family or friends and return your EMI’s.
You should be very careful before getting a personal loan. You should always keep in mind the worst case scenario before taking any financial assistance. Another thing, one should have some savings kept extra for such situations.