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Here’s Why You Should Not Skip Your EMI Payments

By Finserv MARKETS - Nov 7,2019
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How Not to Skip Your EMI Payments

A personal loan is typically required to be repaid as equated monthly instalments or EMIs. While most banks and lenders require that you pay a portion of the principal in addition to the interest charged each month, Finserv MARKETS offers a better deal, particularly for borrowers who’re going through a bit of a cash crunch.

With the Hybrid Flexi personal loans, available on Finserv MARKETS, you only need to pay the interest as part of your EMI payments for the first year or two. This eases up your financial situation until you’re ready to begin repaying the principal as well.

If you’re a first-time borrower, you’re probably just getting used to the concept of EMI payments. It’s possible that you may forget to repay one of the EMIs on your personal loan, or that you might not have the funds to make your EMI payments sometime. However, a missed EMI payment is never a good idea.

Here’s why you should not skip your EMI payments:

1. It weakens your credit score:

A credit score is a numerical evaluation of a person’s creditworthiness. Normally, borrowers with good credit scores find it easier to obtain a personal loan or a housing loan, when compared with borrowers whose credit scores are poorer. You can boost your credit score by making your EMI payments on time.Use the Finserv MARKETS Customer Portal to set payment reminders and pay your EMIs on time.

A missed EMI payment or a delay in repaying an instalment or two can impact your credit profile negatively. It could lower your credit score and thus hinder your chances of availing a loan for other needs later in life. This is how missed EMI payments can prove to be costly mistakes.

2. It brings on additional fees:

As is the case in any sort of financial default, skipping your EMI payments will only bring on additional fees. While most banks and lenders do offer a slight leeway in the form of a grace period, some may not be so generous. It’s best to be aware of the terms and conditions that come into play if you happen to delay or miss an EMI payment.

The additional fees include non-payment penalties and bounce charges. Non-payment penalties are charged when you don’t pay the EMI altogether, and bounce charges are levied in case your EMI cannot be automatically transferred on account of insufficiency of funds.

And here’s a bonus tip. In case it so happens that you had the funds in your account, but your EMI payments weren’t automatically deducted, it’s always advisable to pay your EMI first, so you don’t cross the deadline. Following this, get in touch with your bank to resolve the issue and request a refund, if needed. This way, you can be certain that you wouldn’t accidentally delay the payment of your EMI.

You can handle all these issues on the Finserv MARKETS Customer portal itself. It’s a simple and easy-to-use platform from where you can pay your EMIs, check your repayment schedule, and even download all the essential documents.

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs . What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522