Missed Loan EMIs? Banks and NBFCs Can Take Strict Action
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Moneycontrol•19-01-2026, 21:25
Missed Loan EMIs? Banks and NBFCs Can Take Strict Action
- •Missing the first EMI leads to late fees and reminders, with minimal credit score impact if paid within a month.
- •After two missed EMIs (60 days), banks/NBFCs involve collection teams, report to credit bureaus, severely damaging credit scores.
- •If EMIs are unpaid for 90 days, the loan becomes a Non-Performing Asset (NPA) as per RBI rules, leading to stricter action.
- •For secured loans (car, home), banks can initiate recovery and seize mortgaged assets after 90 days of default.
- •Customers should proactively communicate with banks/NBFCs after the first missed EMI to explore options like EMI reduction or moratoriums.
Why It Matters: Missing loan EMIs can severely impact credit scores and lead to asset recovery; early communication is crucial.
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