4 serious consequences of missing your home loan EMI payments
In the nation's ever evolving economic landscape, consistent and on time repayment of home loan Equated Monthly Instalment (EMI) holds immense value.
It is imperative to make sure that the repayment of not only home loans but any other kind of loan is made on time and in seamless fashion to avoid any late payment fees or charges.
Due to the same, missing out on even a single payment or EMI can result in serious financial complications and legal ramifications.
Rishi Anand, MD & CEO, Aadhar Housing Finance Ltd says, “Missing EMIs can damage your credit score, increase debt burden with late fees, and lead to loan foreclosure or legal action. As, the interest continues to accumulate on defaulted EMIs, further increasing your outstanding balance and putting greater pressure on your finances. To avoid this, set up automatic payments, prioritise timely repayments, and communicate with your lender if facing financial difficulties."
Keeping the above points in mind, here are four critical reasons why staying current on your home loan EMIs is essential:
Your credit score is simply a reflection of your financial prosperity i.e., how reliable you are in making repayments on time. That is why even a single missed EMI can result in causing a substantial drop in your credit score influencing your future savings and borrowing in a negative way.
Missing EMIs can result in financial penalties, legal difficulties etc. These additional costs can strain your financial health further and result in emotional and psychological problems.
Regular non payment can result in several legal difficulties including loss of your property along with other serious economic consequences:
The consequences of missed EMIs extend beyond immediate financial penalties impacting your financial future and economic prosperity.
- Tarnished credit history can make it tough for you to secure new loans or credit cards.
Hence, missing your home loan EMIs can significantly damage your credit profile. It can negatively influence your credit score, invite penalties and even result in serious legal consequences such as property and asset auctions along with seizure of funds for meeting repayment short falls.
These developments generally take place on court orders still, it is always prudent for borrowers to avoid going in that direction as it creates financial instability, legal difficulties and complicates an individual's financial prosperity.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Please consult a professional before making loan-related decisions.
