What happens if I miss an EMI payment for my loan against property?

Missing an EMI payment for your loan against property can lead to serious consequences. If you miss one EMI, the financial institution will continue to charge interest on your outstanding loan amount. Additionally, a late payment penalty is levied which typically ranges from 2-3% of the overdue EMI amount.

If you miss 3 consecutive EMIs, your loan account is classified as a Non-Performing Asset (NPA). The loan provider will report your default to credit bureaus, which will lead to a drop in your credit score. This will negatively impact your eligibility for future loans.

The financial institution also has the right to initiate legal action under the SARFAESI Act and can take possession of your mortgaged property if EMIs are not paid despite reminders.

Therefore, it is critical that you pay your loan against property EMIs on time without fail. If you anticipate an EMI delay, inform your loan provider immediately and request a moratorium if needed.