Home loan EMI: What to do if you can’t pay

All About Home loan EMI

For a house, getting a house loan is very critical and one of the most important decisions to be taken by an individual.

There may be any reason behind this. Will, the bank takes your property is you miss 3-4 EMI’s? No, the bank will not do this, you will be given prior notice, and if you continue to do the same for 6 months, the bank will seize your property.

Lenders are willing to negotiate

Seizing your property is the last option that is with the bank. With the act of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) the bank has the power of taking your property if you are not repaying the loan. After three warnings, the bank will send you demand notice, in that you will be asked to pay all the dues in the given period of time. If you fail to do so, then your house will be seized.

Lenders were willing to offer leeway if the borrower is serious about paying the dues. Finally, the bank sends you to notice after the first default stating the actual value of your property and stating the date of auction of your house.

The bank is more interested in recovering the sum taken as a loan if you repay the amount within six months. The bank will not take any action. The final stage is usually a letter from the Debt Recovery Tribunal (for the loan amount greater than 10 lakh). The hearing is set by the tribunal, and you have to attend that hearing. If you still want to take an extension to repay the loan, then the bank will give you some more time for that.

What are your options?

Tell the reason why you are unable to pay the EMI’s. If you lost your job, and you are sure that you will l get another job within 6 months. The bank will provide leverage for up to 6 months. If due to increasing interest rates the price of your EMI is rising, and you are unable to pay the EMI. The bank will restructure your loan and will increase your tenure period.

Guarantee that FICO rating isn’t unfavorably influenced

On the off chance that you have taken any protection of you to work, the insurance agency will pay your three EMI’s, yet ensure you lost your employment because of some authentic explanation like wellbeing reasons or cutback, not because you were terminated.

Guarantee your FICO rating isn’t influenced gravely. On the off chance that it occurs, at that point, the bank won’t endorse you advance later on. Until you secure decent financial assessments.

Plunge into your reserve funds and recover your speculations

Regardless of whether you have missed a couple of EMI’s, your FICO rating will be influenced, and with ordinary default, it will be hard for you to get advances or Mastercards later on. You ought to have a word with the bank regarding the reimbursement of the advance. On the off chance that you reimburse the advance with no excesses, at that point it will improve your FICO assessment.