Missing an EMI due date sets off loan late payment charges — and, if it happens repeatedly, longer-term consequences for how your repayment history looks. Neither is permanent, but both are easier to prevent than to fix after the fact.
A missed EMI is usually a timing problem, not a sign of anything more serious — and the fastest way to limit the damage is simply to clear it as soon as you can. The Shriram One App lets you check your due date and pay in a couple of taps, so a slip doesn't turn into a pattern.
What Happens the Moment an EMI Is Missed
Once an EMI crosses its due date unpaid, loan late payment charges apply automatically, usually referred to as a penal charge, added on top of your regular instalment. This isn't a discretionary decision made case by case. Under RBI's Fair Lending Practice – Penal Charges in Loan Accounts framework (RBI/2023-24/53, effective April 1, 2024), lenders must apply these charges transparently and disclose them clearly in your loan agreement and Key Fact Statement. They can no longer be added silently as a hidden interest add-on.
Repeated missed payments can also affect how your repayment behaviour is reflected over time — a single missed EMI, corrected quickly, generally carries far less weight than a pattern of missed payment fee charges building up across several cycles.
How These Charges Are Typically Structured
Loan late payment charges are usually structured as either:
· A flat fee, applied once per missed cycle, or
· A percentage-based charge, calculated against the overdue instalment amount
Per RBI's 2023 directions, these charges cannot be compounded — meaning a lender can't charge a penalty on top of a penalty. The exact figure and structure are set by each lender's board-approved policy, so the accurate number for your account is the one stated in your loan agreement or Key Fact Statement.
Is There a Grace Period for Missed EMI Payments?
This varies by lender and by loan agreement. Some build in a short window before a penal charge applies; others apply it from the due date itself.
If you're ever running close to a due date, this is the single most useful thing to check in advance and not after the fact, when the answer no longer helps you avoid the charge.
Whatever your lender's policy, paying through the Shriram One App as soon as you remember is the one step that works regardless of whether a grace period exists. It removes the guesswork.
What to Do if You've Already Missed a Payment
If loan late payment charges have already been applied, a few steps limit the impact:
1. Pay the outstanding missed payment fee as promptly as possible. The Shriram One App lets you settle it in a few taps, without waiting for a branch visit or a call
2. Confirm the exact charge applied by checking your statement or contacting Shriram Finance directly
3. Ask whether any flexibility exists for your specific circumstances — this is handled case by case, not automatically
Paying quickly matters most here, since further charges can accumulate the longer an EMI stays unpaid.
How to Avoid Missing Future EMI Payments
A due date reminder set a few days ahead of your EMI date removes the two things that usually cause a missed payment: forgetting the date, and not having the exact amount to hand until the last minute.
· Set payment alerts through the Shriram One App a few days before each due date
· Ask about auto-debit if you'd prefer to remove the manual step entirely
· Review your loan account periodically rather than only when a reminder prompts you
Check your EMI due date and pay
Frequently Asked Questions
What happens if I miss my EMI due date?
Loan late payment charges apply automatically as an EMI penalty, added to your outstanding balance and typically reflected on your next statement.
How are late payment charges calculated?
Charges are usually either a flat fee or a percentage-based penal charge set by your lender's policy. RBI rules prevent this from being compounded. Check your loan agreement or Key Fact Statement for the figure that applies to your loan.
Is there a grace period for EMI payments?
This depends on your agreement — some loans include a short repayment grace period; others don't. Confirm your specific terms rather than assuming a standard cushion applies.
Can I request a waiver on late payment charges?
Waivers are considered case by case and aren't automatic. Contact Shriram Finance directly if you believe your circumstances warrant a review.
How can I avoid EMI penalties in the future?
Set a due date reminder and auto-debit a few days in advance. The Shriram One App lets you do both from a single dashboard, so you don't have to track the date manually for each cycle.