What are your options if you are not able to pay your EMIs?
Apr 21, 2020 Home Trading Steps
When taking a home loan, the buyer must be aware that he will have to pay the monthly EMI every month for the next 15 to 20 years. Taking the EMI, assuming that nothing will go wrong, is not the way to progress. The future is uncertain, and there can be times when one can find himself in financial hot waters. What can a home buyer do if they find themselves in a situation where they are not able to pay the hefty EMI for a month or a few months in the future.
Here are your options in case you are finding it difficult to pay the EMI due to financial crunch:
1. Do not avoid your lender: Banks send out regular emails regarding the home loan EMIs. If you miss one payment, then the associates from the bank will try to contact you through emails, phone calls and messages. It is essential to talk to them in times like these. Avoiding their call can make the situation worse, and the bank may take strict action against you that can land you in jail. Remember, communication is the key.
2. Be truthful: It is important to inform your bank about your non-payment of EMI. If you have lost your job and paying EMI is going to be difficult then informing the bank about the same is a good idea. Giving them vague ideas about when you will be able to start paying them a bank is a bad idea. If there is a reason that you have failed to find a job, it is necessary to let them know about it. This will assure the bank that you are sincerely trying your hardest best to find a job and pay them back.
3. Keep them in the loop: When you realize that paying the EMI will be difficult, it is important to notify the bank immediately. This will keep them informed about the non- payment from your end and avert any panic or bad blood. Letting them know about your problem will also help them understand what you are going through financially and keep them in the loop.
Options available
It is vital to keep your bank in the loop when you suffer from the financial crisis. The bank will present you with the best suitable option in such circumstances and help you navigate through it. The banks or financial institutions only sell the property as a last resort to recover the lost money.
Here are your options in case you are finding it difficult to pay the EMI due to financial crunch:
1. Do not avoid your lender: Banks send out regular emails regarding the home loan EMIs. If you miss one payment, then the associates from the bank will try to contact you through emails, phone calls and messages. It is essential to talk to them in times like these. Avoiding their call can make the situation worse, and the bank may take strict action against you that can land you in jail. Remember, communication is the key.
2. Be truthful: It is important to inform your bank about your non-payment of EMI. If you have lost your job and paying EMI is going to be difficult then informing the bank about the same is a good idea. Giving them vague ideas about when you will be able to start paying them a bank is a bad idea. If there is a reason that you have failed to find a job, it is necessary to let them know about it. This will assure the bank that you are sincerely trying your hardest best to find a job and pay them back.
3. Keep them in the loop: When you realize that paying the EMI will be difficult, it is important to notify the bank immediately. This will keep them informed about the non- payment from your end and avert any panic or bad blood. Letting them know about your problem will also help them understand what you are going through financially and keep them in the loop.
Options available
It is vital to keep your bank in the loop when you suffer from the financial crisis. The bank will present you with the best suitable option in such circumstances and help you navigate through it. The banks or financial institutions only sell the property as a last resort to recover the lost money.
- The bank can give you an EMI holiday where you are not supposed to pay the EMI for a specified period. If your repayment has been impeccable, then the bank will even give little extra EMI holiday to recover your finances.
- One can also go for loan restructuring. This will help you in reducing your monthly EMI so that you only have to pay a small amount every month without hurting your credibility.
- If your financial crisis is deep and there is no way you can recover from the crunch any time soon, then the banks settle with a one-time payment. This also gets reflected in your credit report, meaning you will find it difficult to find another loan lender in the future.
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