Home sales have skyrocketed amid the corona epidemic. This means that home loan demand has also increased at this rate. However, once again the infection has increased rapidly, which puts the financial crisis at risk. In such a situation, if you have taken out a home loan and are having problems repaying the EMI for some reason, then you may have to pay a fine (fine) and bear many losses.
Penalties and interest must be repaid
Banks will not charge you late fees and penalties if you do not repay the monthly installment (EMI) on time. According to Adil Shetty, CEO of Bankbazaar.com, banks usually impose penalties of 1 to 2 per cent on the amount of EMI. In some cases, you may have to pay interest on the entire amount during the default period. This may be different than late fees.
The credit score is rolled out
If you don’t pay home loan EMI on time, another big loss will come to your credit or sybil score. According to experts, if EMI is missed, the Sybil score will drop from 50 to 70 points. However, you can easily improve it. Paying a late fee tax on the next EMI date will slowly recover your sybil score.
Talk to the lender
Experts say that if you are not in a position to make EMI payments due to valid reasons, you should talk to the bank. If you miss work or have a health problem, the bank will listen to you. The bank can give you 90 days. Only then will your loan be added to the NPA. If you cannot pay within 90 days, the bank may auction your property under the SARFAESI Act 2002.
Extend loan deadlines
If EMI does not pay, you can talk to the bank and apply to extend the time limit. However, doing this requires you to pay the bank more, while the amount of the paid installment is reduced. By default, it is better to pay more and avoid home auctions. Furthermore, you can ask for an exemption to pay the installment. If the bank finds your reason, it will give you a few days discount.
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