Not repaying your loan on time can lead to serious financial trouble. From penalties to legal action, here’s what you need to know!
Your CIBIL score takes a major hit with missed EMIs. A lower score means difficulty getting future loans, credit cards, or financial support.
The lender will send frequent reminders via calls, emails, and letters. If ignored, they may escalate the issue and take strict action.
Each missed payment attracts hefty late fees, penalty interest, and additional charges, increasing your overall debt burden.
Legal Action & Recovery Agents
If you continue to default, the bank may involve loan recovery agents or take legal action, which could lead to serious consequences.
Banks might offer a settlement option, but it damages your credit history. A write-off means the bank declares you as a defaulter.
Talk to your bank, request loan restructuring, opt for an EMI moratorium, or take a top-up loan to manage repayment better.
Plan your finances wisely, repay your loan on time, and borrow only what you can afford to avoid falling into a debt trap! 💰