There are plenty of reasons to become a defaulter in personal loan. When you avail of a personal loans, you borrow money from the bank at a certain rate of interest. Bank or non-banking financial company gives you a time to return the amount of loan. This tenure varies from bank to bank.
Though you took a loan to improve your financial status and paying back your EMI’s properly still we can’t predict what would happen in the future. Life has its way to surprise us.
In case you get unable to return your loan or pay your EMI’s on time. You will get Defaulter in Personal Loan and your CIBIL score gets affected badly. Besides that, you would not be able to get any other loan afterward. Furthermore, you will have a problem with buying insurance, mobile phone services, and other utilities.
Consequences of Being Defaulter in Personal Loan
The major consequence of being a defaulter in a personal loan is that your CIBIL score negatively gets affected. And a negative credit score adversely affects your financial life.
The reason for Defaulter in Personal Loan behind that every bank checks your CIBIL score before providing any services to you whether it is related to a loan or any other kind of insurance.
The second consequence is that the bank may hire a lawsuit against you. If this happens you have to hire a lawyer to protect yourself and if you would not able to save yourself then the court’s decision will be against you. Furthermore, you have to return the loan amount with interest and penalty fees.
How can you avoid being a defaulter in Personal Loan?
Being a Defaulter in Personal Loans will affect your financial life afterward. So it is always suggested to avoid this situation. Some ways that can help you to get out of this situation. These are:
First of all, communication is considered as the best way to avoid this kind of situations. You should not run away from your lender or you should not avoid their calls or emails. Go to them and talk to them.
You should tell them that you are going through a bad time and you are not closing or refusing to return the loan. It is just a pause that you have taken because of your poor financial status.
Assure them that you will continue your EMI’s with time after some time. It may solve your problem up to some extent. They will understand you and give you some time to repay the loan amount.
Another way out is that you can sell your other property to pay the loan because eventually, you have to return the loan. There is no other option. Otherwise, you won’t be able to buy any other financial services. So it’s better to pay the loan. Once the financial problem goes you can buy that property again.
But once you get defaulter it is going to affect throughout your life.
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