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.