There may be several reasons due to which you may fall short of money and not be able to pay the EMIs. That is indeed a stressful situation since the lenders might end up harassing you. Yes! Please keep cool even in such situations. Rectifying a situation always becomes easier when you keep your cool and not end up panicking which could worsen the situation. Make sure you have a copy of all the previous payment details that you have already completed and then speak to the lender. Explain him/her the actual reason which is acting as a hindrance to the future payments to the EMI amount.
There are many likely options in such scenarios. Let’s highlight a few:
Get your loan refinanced
This way you can ensure restructure of your loan which ensures your EMI goes down enabling you to breathe up and repay the amount with more time in time.
Defer the payments
A situation might arise when you can foresee your financial stability in a certain span of time, approach the bank. Ask for a deferral and the bank will give you opportunity and grant relief. Many a time’s, postdated cheques are also entertained.
Make a settlement with a larger amount
If you have sufficient amount in hand on a certain occasion and want to repay the loan, ask your bank and try to settle it down with a one-time payment of the outstanding dues. Generally, the bank waives off charges and agrees to accept the amount as loan settlement.
Reach out to a counselling center
Look for a counselling center and speak out the issue. They will help you with your situation giving answers with the most appropriate options that can be availed. And that is because they have researched the market well and know things which ensures you do not end up in a trap.
Try and ask the bank/lender for a grace period
When you reach out to the lender with a genuine reason in hand, the lender, after listening to the valid reasons for being unable to pay off the EMI timely, will offer you with a grace period. Obviously it will also ensure that it asks for some penalty and the lender then agrees for resuming EMI payments. Yes, as an individual you might have issues like job loss, financial crunch due to other personal reasons, etc. And yes, the lender understands. So, speak out your problem and get it resolved.
Have investments? Liquidate them
There can be worse scenarios when you might feel that nothings working out. But you still have an option left. Yes! Your last resort! You might have mutual funds, other investments, deposits, etc. which you can liquidate to pay the EMIs. Infact, banks also entertain partial payment which in turn ensures EMI reduction.
The lender always provides plenty of options so that you can repay in bits. That is because the bank/lender does not want to repossess whatever you have, rather it wants to have you pay the amount owed, completely or partially. The bank has a ratio called the Non-performing ratio which goes up if you fail paying the amount and it reflects on your bank account which in turn affects your future deals with the bank.
However, it is always recommended to take a loan only when you know for sure that you can repay in the EMI tenure offered. The best practice is to keep yourself financially safe. It’s advisable for you to save some amount of money on a monthly basis from your salary/earnings. This enables you to deal with any sort of financial crunch that always come up un-invited.
