Missed Two EMIs? What Banks and NBFCs Can Do
Business
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News18•20-01-2026, 19:42
Missed Two EMIs? What Banks and NBFCs Can Do
- •Missing the first EMI results in late fees and reminders, with minimal credit score impact if repaid within a month.
- •Missing the second EMI (60-day delay) triggers collection team action and negatively impacts credit scores due to reporting to credit bureaus.
- •If EMIs are not repaid within 90 days, the loan becomes a Non-Performing Asset (NPA) as per RBI rules, leading to stricter recovery actions.
- •For secured loans (car, home), banks can initiate recovery of mortgaged assets after 90 days; for unsecured loans, arbitration or civil recovery is threatened.
- •Customers should proactively communicate with banks after missing the first EMI to explore options like EMI reduction or moratoriums, especially during emergencies.
Why It Matters: Missing EMIs escalates consequences; proactive communication with lenders is crucial to mitigate severe impacts.
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