Need clarity on skipping an emi of home loan for a month

[hemanthbn]

Hello Team,
I had requested banks to reduce my home loan roi considering my cibil score, I sent request almost one month back, till now I didn't get any response, if I ask bank they are telling that it has been sent for higher approvals, so I bw all these my emi date came which is on 27/06/2024, so can I skip this emi or can pay later after going to bank once they reduce my roi or what I can do in such cases, so I need to understand, if we skip one month or delay repaying emi for one month what all might happen
One thing for sure is my cibil would get affected, anything more?

Note: I have paid all my emis from 4 years without fail till now

 

[Baijayanti Roy]

What Happens when you miss an EMI Payment​

1. Your Credit Score takes a Hit: Missing even one payment can mess up your credit score. And's not good news for your future financial standing.
2. Extra Charges and Penalties: Expect late fees and more interest charges on top of what you owe. It just adds your money stress.
3. Collection Calls: Brace yourself for those calls from the bank reminding you of your missed payment and asking for immediate action.
4. Loan labeled NPA: If you go 90 days without paying, your loan gets classified as a Non-Performing Asset (NPA). It's serious stuff that could lead to the bank taking action under the SARFAESI Act.
5. Legal Troubles: The bank can take back your mortgaged property without involving the court once your account hits NPA status. Yikes!

Here's What You Should Do Right Away​

1. Pay up the EMI: It's best to make that payment before or on the due date to avoid all these consequences.
2. Talk to the Bank: Keep in touch with the bank about reducing your interest rate request and keep records of all communication.
3. Ask for Help: If money's tight, ask about moratorium or loan restructuring options for some breathing room.

Your Action Plan​

• Write it Down: Send a written explanation of your situation to the bank if you haven't already. Make it clear you're waiting on an answer about reducing your interest rate.
• Get Help: If the branch isn't helping, reach out to higher-ups at the bank or ombudsman for assistance.
• Budget Wisely: Make sure you have enough cash set aside to cover those EMIs and avoid any more financial trouble.

In a Nutshell​

Skipping EMI payments is no joke with its impact on credit scores and legal consequences under SARFAESI Act. Paying on time is key, and don't be shy about negotiating with the bank for better rates. If things get tough, seek guidance from financial experts for solutions.

 

[hemanthbn]

What all you have said , I think its in case of extreme conditions, I actually wanted to delay or skip a month , since bank is not responding properly to my queries, and as per RBI rules bank cannot put any penalties for skipping an EMI is what I know

 

[Skylar]

One thing for sure is my cibil would get affected, anything more?

Not only will your credit score be affected, but also the credit scores of the individuals who have co-signed as sureties for you. When the higher authorities reviewing your application notice a missed payment, they may increase the interest rate or adjust the monthly payments to expedite loan closure. And this one missing payment will hunt you in all your applications for credit cards and loans in future.

Skipping a payment is never an option.

 

[hemanthbn]

But I wanted to understand why banks are like this, sent an email for processing reducing my roi, they don't have sense to respond and is it so time consuming process to approve yo bank for reducing roi of an individual home loan, can any complaints can be raised to RBI

 

[Skylar]

But I wanted to understand why banks are like this, sent an email for processing reducing my roi, they don't have sense to respond and is it so time consuming process to approve yo bank for reducing roi of an individual home loan, can any complaints can be raised to RBI

You haven't mentioned the bank name?

 

[hemanthbn]

The Great Canara Bank lol

 

[Skylar]

The Great Canara Bank lol

Do you expect PSU banks to respond to emails?
Unfortunately, that’s not the case. They lack proper Standard Operating Procedures for handling emails and customer problems. To address your concerns, you’ll need to visit the branch in person. The bigger issue lies in the inconsistency among employees: some take training seriously and learn everything, while others skip crucial training and only focus on tasks that customers commonly approach the bank for.

 

[hemanthbn]

I approached bank thrice already but whenever I go they just try to escape by saying we have sent for approvals, but work wise nothing is getting forwarded. They just want to eat our interest money which is really sad thing in India, banks was established to help people and channelize the process but nowadays as you said , I have seen that they lack SOP's

And many thanks for clarifying my queries

 

[Bharatiya Nagrik]

I approached bank thrice already but whenever I go they just try to escape by saying we have sent for approvals, but work wise nothing is getting forwarded. They just want to eat our interest money which is really sad thing in India, banks was established to help people and channelize the process but nowadays as you said , I have seen that they lack SOP's

And many thanks for clarifying my queries

Whatever the case may be we will always be the affected party when dealing with banks. No matter how logical ones problem or query is he/she will always be at the mercy of banks decisions.

Don't spoil your credit score and future chances of getting any loan, CC etc.
Don't skip on any EMI.

Go to the bank and clearly tell them if they are not ready to reduce you home loan you have another option of transferring your loan to a better bank which will give you a reduced interest rate.
In fact I suggest you take a quotation from any other reputed bank for home loan transfer and show that to the canara bank manager and then see how they change.

 

[hemanthbn]

Yeah one way to them lesson , I will try this option seriously now, let's see

 

[Ganesh_Shinde]

Let me put the answer in a simple way -

1 - Do not skip any EMI's.
2 - Simply raise a complaint with RBI Ombusman.
3 - Trust me this will resolve the issue.

 

[Skylar]

Let me put the answer in a simple way -

1 - Do not skip any EMI's.
2 - Simply raise a complaint with RBI Ombusman.
3 - Trust me this will resolve the issue.

So, you think RBI will help people reduce their interest rate on home loan

 

[BHAVESHKESWANI]

Hello Team,
I had requested banks to reduce my home loan roi considering my cibil score, I sent request almost one month back, till now I didn't get any response, if I ask bank they are telling that it has been sent for higher approvals, so I bw all these my emi date came which is on 27/06/2024, so can I skip this emi or can pay later after going to bank once they reduce my roi or what I can do in such cases, so I need to understand, if we skip one month or delay repaying emi for one month what all might happen
One thing for sure is my cibil would get affected, anything more?

Note: I have paid all my emis from 4 years without fail till now

don't skip it (we have faced the issue and CIBIL reduced also). Pay your EMIs regularly. And when your ROI is going to be revised, so it may continue as per new rate...

 

[Kalyan]

Hello Team,
I had requested banks to reduce my home loan roi considering my cibil score, I sent request almost one month back, till now I didn't get any response, if I ask bank they are telling that it has been sent for higher approvals, so I bw all these my emi date came which is on 27/06/2024, so can I skip this emi or can pay later after going to bank once they reduce my roi or what I can do in such cases, so I need to understand, if we skip one month or delay repaying emi for one month what all might happen
One thing for sure is my cibil would get affected, anything more?

Note: I have paid all my emis from 4 years without fail till now

Never ever skip emi,that will attract penalty charges as well as your request for lowering the rate will be declined. Alternatively you can check for balance transfer for lower rate. As such your current bank will charge you some amount for lowering the rate. Calculate your expenses for transfer and the savings with the existing loan and decide accordingly.

 

[Ganesh_Shinde]

So, you think RBI will help people reduce their interest rate on home loan

Great you are following the post. If you read the post you will realize that the bank is not responding to the emails. I have not mentioed anywhere that RBI is going to reduce the rate of interest. Just read the question thouroly and don't be impatient to respon.

 

[Skylar]

Great you are following the post. If you read the post you will realize that the bank is not responding to the emails. I have not mentioed anywhere that RBI is going to reduce the rate of interest. Just read the question thouroly and don't be impatient to respon.

You work in a regulatory, yet you don’t even know how the complaint process works.
The first complaint should be registered, but there is no complaint; he only requested assistance from the bank, and the bank didn’t respond.

Now, could you enlighten us on the options the RBI has regarding this situation? If he had gone to the bank and made a request, the RBI might have considered it. However, even if the RBI takes this complaint, what possible resolution could they offer? They may reply but they won’t approve his request since he complained to the RBI.

You and your AI-generated post, I don’t understand why these staff members encourage you here. If you look at all your posts and engagement, hardly anyone replies to you. From now on, I won’t either.

 

[Ganesh_Shinde]

To answer your question since bank is not responding to the request there itself it is turned to a complaint. This is how it works into corporate.

Now he needs to submit a comlaint to RBI stating banks is not responding to his email or request. So the first complaint is already registered.


No matter who responds to me or not. I am happy where I am.

Wish you good luck for not to respond.