Thursday, 30 January 2014

Not able to pay home loan EMIs? Here is what you can do

Having a house is lot of basic necessity instead of luxury now days. To not to miss the necessities home loans have been planned. Once the loan is given, the bank starts expecting to pay back the EMI’s each month till the loan period. Everything will be fine till the home loan EMI is paid on time. What incase if you stop paying due to losing the job or any medical emergency. This article will inform you about options when you stop paying the EMI.


Skipping EMIs may consider you as a loan defaulter.
If one EMI is skipped in that case bank will not consider you as a loan defaulter. If you skip EMI’s for three consecutive times than the due reminder will be sent. If there is no response from your end than the legal notice will be sent by the bank. Then you will be termed as a loan defaulter.

What happens if you become loan defaulter?
Once you become the home defaulter, the bank will start the procedure of acquiring over the property. They will arrange the auction to sell the property and from that they will recover their due amount. If any action should be taken it should be taken before the auction. If the credit score hit than you might not be eligible for loans in future. This may be the worst thing which may happen to you.

Options to be considered during this situation.
The best choice is to negotiate with the lenders upon this. Banks may speak to you based on this issue rather than the procedure of acquiring the property. You can show the past documents of the EMI payed all the clearance documents of the previous loan. There are few more options.
  • One can ask the bank for the grace period to continue the EMI payments. You can explain the bank the reason behind not paying the EMI may be loss of job or business etc. Bank may give the grace period for recovering EMI payments with some penalty.
  • Loan Refinancing- In some cases the interest rates will increase and the individual may not be in a condition to pay the EMI. In such cases you can speak to the bank to refinance or restructure the home loan. They may increase the loan period due to which the EMI will go down.
  • Counseling Centers- They are many counseling centers who help you with this problems. Based on the situation they will they will give the correct options. They will give u the correct information on the things to be followed.
  • Liquidating your investments- If any of the above options do not work than this can be considered as the final step. One can liquidate the existing investments like deposits or mutual funds to make EMI payments. This amount can also be considered to make part payment, further going which will reduce the EMI.
To avoid these things, you should see to it that you have to at least 5 to 6 months of expenses are kept aside as an emergency fund.


  1. Good Post and nice updates .....dreamz infra rocks

  2. This article is useful who are looking for home loan tips and suggestions or who had already take loan and getting problems to pay their EMIs. Nice Post.

  3. Very good and valuble suggestions mentioned here.. Thanks for the info.

  4. Thank you for sharing such great information. It was very informative and has help me in finding out more detail about Home Loan!