Home Loan EMI: To fulfill the dream of owning a house, people take home loans, whose EMI has to be paid every month. When the financial situation is bad, sometimes it becomes difficult to pay the EMI. Due to this, many times the home loan installment is missed. In such a situation, what will happen if three consecutive installments of the home loan are missed? It is very important to know this because it can save you from many problems.

If the first EMI is missed-

If the first EMI of the home loan is missed, the bank will send you a reminder through SMS and email. The reminder may also have a link for payment, but it is important to check its authenticity, as it may be fake. The lender can charge a penalty of 1 to 2 percent on late payment. Once the payment is made, your loan account returns to its previous state.

What will happen if the second payment is defaulted-

If the second EMI is not paid on time, the bank will ask you to pay the home loan installment with a penalty. Also, depending on your financial situation, you may be given some time to pay this installment. If you do not pay the second installment, the bank will alert you that if the third EMI is missed, legal action can be initiated. In such a situation, if you are financially capable, you should immediately pay two installments.

What will happen if the third EMI payment is defaulted?

If you miss the third consecutive EMI of the home loan, the bank repeatedly sends you reminders for payment. If you do not pay the EMI for more than three months (90 days), the lender can start the process of auctioning your property so that the outstanding amount can be recovered. Therefore, timely payment is important.

Let us tell you that "On delaying EMI, the first action that a lender normally takes is to impose a penalty of 1-2 percent per month on the outstanding EMI. If you make a big default, the lender will identify your loan as NPA and start the recovery process. However, before this action, he will send a notice.

What will be the effect of late payment-
If you do not pay EMI for more than 90 days, the lender can start auctioning your property to recover the remaining amount. This will declare your account as NPA, resulting in a rapid decrease in your credit score. There will be a serious impact on the financial situation.