Loan EMI One Day Missed: It is often seen that due to insufficient balance in the bank account on the date of EMI, the payment is not made on the scheduled date, due to which the bank imposes a penalty on the loan taker.
This also has a negative impact on their credit score, even if it is a one day mistake. Let us tell you that in case of EMI lapse, not only penalty is imposed, but it can also affect your next loan.
CIBIL score may drop drastically
According to a report, a person had delayed the payment of his home loan EMI by one day, due to which the CIBIL score of his home loan and top-up loan dropped from 799 in August 2024 to 772 in September 2024.
Although he paid the next EMI on the due date, his score remained at 772 till October. Similarly, its Experian score also decreased by 10 points. It fell from 734 in August to 724 in September.
Loan EMI One Day Missed: You will have to pay more interest
If the EMI lapses, not only do you have to face penalties, but it can also impact your next loan. For example, if you have thought of taking home loan top-up from SBI.
If your CIBIL score was 760, you could get an interest rate of 9.10% from the bank, but if your score falls below 750, you will be given a loan at an interest rate of 9.30%, due to which you will have to pay Rs 46,593. Additional interest will have to be paid.
Loan EMI One Day Missed: This is how credit score is made
Know that your credit score is determined by your loan repayment history. In such a situation, even a day's mistake can affect the credit score, which can last for a long time. How serious will this be? It depends on how fast it is growing.
Comments are closed.