Many times such a situation arises when we suddenly need money. We need to ask money from friends and relatives. Many people do not want to ask money from relatives and friends. Personal loan is an easy option for such people. In the last few years, because of fintech, it does not take time to get loan approved. The loan money comes immediately to your savings account. That’s why many people take personal loans even for minor needs. Experts say that it is not right to do this. It has many disadvantages. Let us know about this in detail.
Keep these things in mind after taking a personal loan
Personal Loan (Personal Loan) You should take it only if you have no other option. Then after taking the loan, you will have to take full care of paying its EMI. Your target should be to repay the loan within the stipulated period. Banks or NBFCs give personal loans for a fixed period. It could be 6 months, a year or more. EMI payment should be made on due date. If EMI payment is not made on the due date, it not only has a negative impact on your credit score but also causes huge losses to you.
Why is it necessary to pay loan EMI?
The rules for recovery of personal loans are fixed for banks and NBFCs. If a person does not return the personal loan money, banks and NBFCs have the right to use legal remedies. If a person does not pay his loan EMI on the due date then it is called default. However, there can be many reasons for not paying EMI. Many times, EMI payment is not possible due to sudden loss of job, sudden serious illness or accident.
What is the reason for not paying EMI?
Experts say that if the customer is defaulting on EMI payment due to some reason over which he has no control, then he can talk to the bank or NBFC about this. Banks and NBFCs help the customer after listening to him. The bank can give more time to the customer to repay the loan. The bank can reduce the EMI installment. Many such options are given to banks and NBFCs, using which they can easily repay the money to the bank. But, if the customer stops paying EMI without informing the bank or NBFC, then he has to suffer huge losses.
What are the disadvantages of not paying EMI?
The first disadvantage of defaulting on loan EMI payment is that your credit score gets spoiled. Every EMI payment default or delay in payment reduces your credit score by 50-100 points. Second, if you do not pay EMI, your debt burden increases. Banks and NBFCs charge interest on delay in payment. Third, banks and NBFCs can use legal means to recover the loan. This can cause a lot of trouble for the customer.