Unable to pay home loan EMIs? Here’s what you can do

Planning to buy a house on Home Loan? Think Before You Act


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Owning a home is more a necessity than a luxury as it becomes an essential part of our life and hard earned money. If you are planning to buy a house, don’t take quick decisions getting allured by the wonderful charming ads that say many attractive slogans and options. It is you who is going to bear all the expenses at a stretch of more than half of your life span years.  If you are ready with your savings, budget and strongly feel that you are financially stable to own a house by taking home loan, than opt for it.

Be careful and plan before you opt for a home loan, because there is nothing more demanding than your happiness and peaceful state of mind.

After taking all necessary precautions and planning, if you fall in a state where you are unable to pay home loan EMIs, you tend to become a loan defaulter.


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Basically there are two major problems that would face if you stop or fail to pay EMI’s to the bank. Firstly the bank will issue a legal notice to you only and after it arrives at a point and brand you as a loan defaulter after repeated reminders on call and SMS to you. If you fail to respond to them for more than three months, it will get into action and take some serious steps like sending a legal notice to pay the EMI’s on time. Secondly, even after sending the legal notices, if irresponsible behaviour from your end still continues, bank will begin the process of taking over your property.

Banks will be ready to understand you, if you approach them rather than keeping away from them in reminder calls and notices. Banks welcome the option of helping you in overcoming than processing the possession of your property or sale of the property.

By any chance, you become a loan defaulter. Here are few tips to help you:

Request for a Grace Period:Take care to approach bank and discuss your financial instability and ask for permitable time period to pay EMI’s in leisure. Be clear and open about your financial loss, job loss or any mishap that has made you a loan defaulter. There is a chance for a small penalty charged by bank.

Loan refinancing:In any case, the interest rates go high and your EMI seems to be unaffordable with increased interest, you can ask bank to refigure your home loan that can be through an increase in the tenure of the loan. By doing so, your EMI can be low as flexible for to pay.

Investments Liquidation:If you are not able to cope up with above options, then you can better liquidize your early deposits and investments to adjust to the EMI’s Payments. You can further use the remaining amount for future EMI’s.

Counselling Centers: Most of the banks either National or Private have counselling centers where they deal with loan defaulters and other credit related issues. Here you can get tips on how to overcome your debts while you are in financial crisis. They open up with options that can flex you to pay EMI’s at a much relaxed mode.


Image Source: http://www.choice.com.au/

On an ending note, it is clear for you to be ready to face any hiccups that you can encounter in case of being a loan defaulter. But it is always better not to fall into such category and keep around 6 months of funds available with you in case of emergency, job loss, or any financial crisis you face.

We at choice-India, have good home loan provider bank who can help you get loan and save you in all situations.

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