Missed Two EMIs? Act Fast to Negotiate Before Your Loan Becomes an NPA

• Missing the first EMI is seen as a delay, incurring late fees and penal interest, but usually causes minimal credit score damage if cleared quickly.
• After two missed EMIs (60+ days overdue), the loan is a serious delinquency, leading to frequent calls, potential collection team involvement, and a significant drop in credit score.
• For home and car loans, legal action is typically avoided after two EMIs, but the account is closely monitored and escalated internally.
• Beyond 90 days overdue, the loan becomes a Non-Performing Asset (NPA) under RBI rules, triggering formal notices, severe credit damage, and recovery proceedings for secured loans.
• Costs like accruing interest, upward margin resets, legal notices, and collection fees quietly pile up, making early negotiation crucial to avoid severe financial consequences.

Why It Matters: Act immediately after one or two missed EMIs to negotiate with lenders and prevent severe credit damage.