What Happens If I Miss an EMI? A Missed EMI is not the End of the Road, Borrower Action Plan for Damage Control

Missing an EMI happens — especially with rising expenses and unpredictable cash flow.But even a single missed EMI can have consequences if not handled correctly.

Here’s a clear, actionable plan to minimise the damage.

1. What Happens If You Miss One EMI?

   1. Late Payment Penalty

      Banks add penalties ranging from ₹500 to 3% of EMI depending on lender policy.

   2. Interest on Overdue Amount

      You’ll be charged penal interest (usually 2–4% extra per month).

   3. Negative Impact on CIBIL Score

      Even 30 days past due (DPD 30) can drop your CIBIL score by 50–70 points.

   4. Possible NPA Tag (If Delayed Long Enough)

      If not paid for 90 days, your account may be marked as NPA (Non-performing Asset) — this severely affects your credit future.

   
   

2. What NOT To Do

   1. Don’t ignore calls/messages from the lender

   2. Don’t wait for next month assuming it will adjust automatically

   3. Don’t apply for new credit immediately — it triggers more checks and rejections

   
   

3. Your Step-by-Step Action Plan

   1. Step 1: Pay the EMI Immediately

      Even if you’re late, paying within 15–20 days often prevents reporting to the credit bureau.

   2. Step 2: Contact the Lender

      Explain your situation honestly. Many lenders will:

      1. Waive penalties

      2. Allow delayed payment

      3. Offer a one-time adjustment

   3. Step 3: Request EMI Rescheduling

      If cash flow is tight, ask for:

      1. Tenure extension

      2. Temporary EMI reduction

      3. Moratorium (for extreme situations)

   4. Step 4: Set Up Auto-Debit or Standing Instruction

      This prevents future accidental misses.

   5. Step 5: Keep Bank Balance Sufficient

      Maintain at least 1.5x your upcoming EMI in your account 3–5 days before the debit date.

   
   

4. How to Repair Credit Score After a Missed EMI

   1. Pay all EMIs on time for the next 6 months

   2. Keep credit utilisation below 30%

   3. Avoid applying for new loans temporarily

   4. Check your credit report for accuracy

Final Thoughts

Missing one EMI is not the end of the world—but ignoring it is. Act quickly, speak to your lender, fix the overdue, and stabilise your repayment history. You can fully recover your credit score with consistent discipline over the next 3–6 months. Get in touch with one day finance for a free consultation.