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In today’s time, when employment rate is getting down and inflation is on its peak. When recession is knocking the doors again. The biggest fear is, not able to fill Loan EMIs. Also, what would you do, if someone come up on the door for recovery. To avoid such situation, we should keep certain points in mind.
Inform Bank About Your Situation
Normally, when this type of situation starts, when you know that at certain point we won’t be able to pay our EMI. You have a sense or idea about that. You should not wait to bounce the EMIs, because as soon as 3 EMIs passed and you were not able to pay, then you will be consider as defaulter.
In such situation instead of avoiding answering calls and notices from bank you should inform bank in advance that from next month onwards I won’t be able to pay EMI because of some reason. For example: I lost my job, or my business was in loss so I closed it etc. In such cases, you can ask bank to give you some options.
Bank has some rights, using that it can help you in such situations, like:
- Bank can give you some time to pay the EMIs. Officially, bank has right to give you 6 months to maximum 2 years of time for the same.
- Bank can restructure your EMI. Say instead of 20 thousand, you can pay 10 thousand then Bank can restructure your loan in a way that you can pay 10 thousand per month.
- Bank can refinance your loan, bank can pay for your previous loan and can start your new loan according the EMIs you can pay.
Points To Remember Regarding Loan
- Instead of not paying any EMI amount, you should pay certain or small amount to your loan amount this will help you to get saved being tagged as defaulter.
- Always do written communication with bank this will help you to prove that you have informed about your situation number of times and asked for some time.
- Avoid 90 days continuous transaction gap, some small transaction in between will help you not being declares as NPA (Non Performing Asset).
Note: Bank itself don’t want its customers to be declared as NPA. Because as more the NPA rate of bank, lesser will be its shares value in market.