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.