What Happens if You Fail or Miss to Pay Home Loan EMI?

Nowadays, getting a dream house is really difficult but this dream can be accomplished. Home loans make your dream of having a house easy. They help you by financing you in your purchase.The only way that many people can afford to buy a home is by obtaining a home loan. Home loans also offer the borrower significant tax advantages. However, these loans have a long tenure. Only 75-90% of the cost of the property is sanctioned else is to be paid as a down payment. These long EMI's are sometimes a burden to pay especially in case of financial crises or loss of job. Now what is your miis to pay EMI? In this article, you will get to know what happens if you are unable or miss to pay a home loan EMI.

What happens if you fail or miss paying your home loan EMI ?

• If you fail to repay the loan, the bank or housing finance company (HFC) that provided the financing for your property purchase will have the resources to do so in some other method. A home loan is a securitized loan, meaning that the lender will possess your home until the entire loan has been repaid.
• The lender is authorised to send you payment reminders if you don't make payment of your EMI's for three consecutive months. The lender has the right to recover its debts by auctioning the property if payment is not done yet.
• Another disadvantage is that if you miss your EMIs and become a defaulter it would lower your credit score, which could make it challenging for you to borrow money in the future.

Points to remember-

• You must take care of your personal expenses and should do planning and budgeting for regular savings for repaying a home loan.
• Before your loan is categorised as a non-performing asset, you have 90 days to pay your dues (NPA).
• You still have time to make your loan payments before the auction, or you can file an appeal with the Debt Recovery Tribunal to stop the sale, if you default on your mortgage and the lender plans to sell your home at auction to recoup his debt.

You should analyse your finances and come up with a plan for paying the house loan EMI before taking on any debt. It is preferable to determine your home loan EMI before you begin the application process. To assist you with this computation, you can utilise an online EMI calculator. It will be easier for you to keep up with your repayments if you are aware of how much you must pay each month.