Is it bad if I miss a couple of EMI’s for my loan due to insufficient funds? Will I have problem in future?



Due to some financial constraints I was unable to make Payments for my EMI. Will this be recorded in my credit rating and will hamper my chances of availing loan in the future? What can I do to avoid this kind of situation? Can I talk to the bank and have that bad rating informed if its tracked?

3 Replies to “Is it bad if I miss a couple of EMI’s for my loan due to insufficient funds? Will I have problem in future?”


  1. With any financial problem, the first thing to do is speak to the bank you have the contractual obligation. Explain why you have been unable to make payments. If you do not make an effort to contact yr creditor it will not augur well for any future financial requirements.

    Banks are quite understanding if you are having problems, seek their assistance instead of trying to avoid the situation as you will only make it worse. If handled correctly the bank may @ their discretion vary the payment amount/period or even suspend the interest portion until you’re back on yr feet.

    You don’t want the bank’s ‘bad debtors’ department sending you letters etc., & once placed in the hands of debt collectors outside the bank you will incur many more fees. Take control of the situation & see what assistance the bank is willing to offer you. Good luck


  2. This is a normal condition prevailing in the market after the recent recession hampering the entire industries.
    Due to lapsed EMI’s your credit rating is going to be changed. They have strict policy to recover the money though. Approach the bank for reconsidering the loan. Mostly they can increase the amount of tenure of your loan such that EMI’s will become lesser and would be easier for you to pay. Whenever your financial conditions improve prepay it as soon as possible such that your credit rating becomes good.

    They will ask you to provide an answer for the solution as you have taken a loan and it would be your responsibility to repay them.





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