Unable to Repay Personal Loan?

Repay Personal Loan

There are several ways to repay any loan faster, like making Bi-weekly payments, rounding up payments, making extra payments per year, refinancing your loan. But, if you are still unable to repay your loan. Then, the banks may take some actions against the applicant in several ways:

1. You will have to pay more money to the bank as penalties, fees and interest charges.
2. Your credit score will also fall, which might take a lot of years to recover.
3. The person must never avail new loan to repay the old loans.
4. As we know, a personal loan is an unsecured loan, and the bank can file a criminal or law suit against the borrower.
5. The bank sends reminders to the applicant in case of non-repayment; if the applicant does not reply to the reminder, the bank will file a case.
6. Follow up from the lender will start as soon as you miss an EMI. After 3 months, the bank will be allowed to file cases against the applicant.

What to do in this case when you are unable to repay Personal Loan

1. There are some expectations that someone else will repay the loan on your behalf.
2. A guarantor loan will be made to repay your personal loan if the borrower misses only one single payment.
3. In the case of a joint loan, the other person can make the payments as he is equally liable for loan payments.

What can you do in such cases:

1. The best option is to speak to your lender.
2. If there is any time issue, the bank, in maximum cases, provides the applicant with extra time.
3. If there is any longer time, contact them to ask for some breathing.

Help for you :

1. Several national debt charities may help you.
2. Citizen Advice
3. National Debt line
4. Step Change

Summary:  We must borrow what we can repay, as there might be situations that we don’t want to face.

To avoid such situations, the person must be aware of the whole process of availing and repaying the loan. But, this is a fact that the person has to repay what he borrows.

Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.