What happens if I miss a loan EMI?
Updated · CardKhoj Editorial Team
Short answer
If an EMI bounces, the lender charges a bounce fee (usually ₹400–₹750 plus GST) and a penal charge on the overdue amount. The missed payment is reported to credit bureaus and lowers your CIBIL score. If dues stay unpaid for 90 days, the loan becomes a non-performing asset and recovery action can begin.
What to expect
| Days overdue | Consequence |
|---|---|
| 1–30 | Bounce charge, penal charge, reminders; reported as overdue |
| 31–90 | Account flagged as a special-mention account; score falls further |
| 90+ | Non-performing asset; legal notice, recovery, or repossession for secured loans |
Your rights
- Under RBI rules, lenders can charge a reasonable penal charge but cannot add it to the interest rate or charge interest on it.
- Recovery agents may contact you only between 8 am and 7 pm and must not harass you or your family.
What to do
Pay the missed EMI as soon as possible — one 10-day delay does far less damage than a 60-day delay. If you are facing a longer problem, ask the lender for a restructured plan or longer tenure before you default.
This answer is general information, not personalised financial or tax advice. Rules, rates and limits change — confirm with your bank, the RBI or a qualified adviser before making decisions.