{"id":1387,"date":"2020-09-06T23:46:18","date_gmt":"2020-09-06T19:46:18","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=1387"},"modified":"2020-09-06T23:46:27","modified_gmt":"2020-09-06T19:46:27","slug":"missing-loan-emi-in-uae","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/","title":{"rendered":"Missed paying a Loan EMI in UAE? Here are it&#8217;s effects and consequences\u00a0"},"content":{"rendered":"<h1><span class=\"ez-toc-section\" id=\"When_you_miss_paying_your_Loan_EMI_in_UAE\"><\/span><span style=\"font-weight: 400;\">When you miss paying your Loan EMI in UAE\u00a0 <\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><span style=\"font-weight: 400;\">and do not clear your outstanding due within the due period, you are considered a defaulter and Defaulting on a scheduled repayment could have repercussions. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every bank and lenders has its own terms and conditions when it comes to non-payment of loan EMis. Continue reading to find out what happens if you miss the monthly payment of your loan&#8230;<\/span><\/p>\n<p><a href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/morgan-housel-x_fbh4utwk4-unsplash\/\" rel=\"attachment wp-att-1407\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1407\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2020\/09\/morgan-housel-X_fbh4Utwk4-unsplash.jpg\" alt=\"\" width=\"4400\" height=\"2800\" \/><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e278a8bbfa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e278a8bbfa\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#When_you_miss_paying_your_Loan_EMI_in_UAE\" >When you miss paying your Loan EMI in UAE\u00a0<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#What_are_the_two_categories_of_loan_defaults\" >What are the two categories of loan defaults?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Major_defaults_%E2%80%93\" >Major defaults &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Minor_defaults_%E2%80%93\" >Minor defaults &#8211;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#What_are_the_consequences_of_missing_a_loan_EMI_payments\" >What are the consequences of missing a loan EMI payments?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Impact_on_your_credit_score\" >Impact on your credit score<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Low_creditworthiness_for_future_borrowing\" >Low creditworthiness for future borrowing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Additional_penalties_and_fees\" >Additional penalties and fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Recovery_agents\" >Recovery agents<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#How_can_you_avoid_loan_defaults\" >How can you avoid loan defaults?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Plan_finances_better\" >Plan finances better<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Request_for_a_lower_EMI\" >Request for a lower EMI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Part_payments\" >Part payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/moneymall.ae\/credit-blog\/missing-loan-emi-in-uae\/#Request_for_an_EMI-free_period\" >Request for an EMI-free period<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_two_categories_of_loan_defaults\"><\/span><b>What are the two categories of loan defaults?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to most banks and financial institutions, personal loan payment defaults are classified into two categories:<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Major_defaults_%E2%80%93\"><\/span><b>Major defaults &#8211; <\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><b><span style=\"font-weight: 400;\">Major payment defaults are those where the borrower has not made a payment in more than 90 days. Most financial institutions avoid offering loans to individuals who have major payment defaults in their credit report. When somebody has payments pending for more than 90 days, the loan account is marked under the Non-Performing Assets (NPA) group.<\/span><\/b><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Minor_defaults_%E2%80%93\"><\/span>Minor defaults &#8211;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Minor payment defaults are the loan accounts in which the non-payment is less than 90 days. Borrowers who have minor defaults against their loan account can recover from the negative impact that it has on their credit score.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_consequences_of_missing_a_loan_EMI_payments\"><\/span><b>What are the consequences of missing a loan EMI payments?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are a few consequences of missing your personal loan EMI payments:<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Impact_on_your_credit_score\"><\/span><b>Impact on your credit score<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">All your financial transactions related to your debts are recorded in your credit report. Payment details, such as date and amount of EMIs, are included in the credit report and decide your credit score. All your overdue payments or non-payments are factors that harm your credit score. Missing even one payment could decrease your credit score. With a poor credit history, it becomes exceedingly difficult to obtain loans in the future.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Low_creditworthiness_for_future_borrowing\"><\/span><b>Low creditworthiness for future borrowing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When you apply for any loan, the lender carefully checks your credit report and score to get an idea about your financial stability and assesses the risk involved in providing a loan to you. A low credit score makes lenders hesitate in lending you money. Even if they decide to make an exception, they will probably loan you a smaller amount than you asked for and may charge you higher interest.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Additional_penalties_and_fees\"><\/span><b>Additional penalties and fees<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Late payment or non-payment of an EMI may result in you have to pay additional fees and charges to the lender. For example, if you make a payment towards your EMI after the due date or within a grace period, you shall need to pay the \u2018late payment\u2019 fees. If you delay the payment even more and become a defaulter, you can be charged additionally on the unpaid amount.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Recovery_agents\"><\/span><b>Recovery agents<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a last resort, banks and financial institutions sometimes send agents to recover the loan amount when the default period has extended beyond 90 days. The bank issues a 60-day notice to the borrower before the loan account is tagged as an NPA. This is a situation that is best avoided since it can be quite stressful.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_can_you_avoid_loan_defaults\"><\/span><b>How can you avoid loan defaults?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While loan defaults should be avoided at all costs, there are a few methods that can be employed when the situation does arise. In most cases, borrowers tend to have prior knowledge of whether or not they would be able to make the upcoming EMI payments. The following are options that the borrower can consider.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Plan_finances_better\"><\/span><b>Plan finances better<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In order to preemptively prevent chances of defaulting on a loan, it is advisable that borrowers plan their finances more efficiently.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Request_for_a_lower_EMI\"><\/span><b>Request for a lower EMI<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you foresee the possibility of defaulting on a loan payment, you should approach the bank and inform them of your financial circumstances and request for a lower EMI. Banks usually lower EMIs by either extending the existing loan tenure or converting an unsecured loan to a secured loan. In cases where the loan is converted to a secured loan, the interest payable on the amount borrowed is also lower. Of the 2 options, converting an unsecured loan to a secured loan is ideal because the reduction in EMIs is significant when compared to extending loan tenures. Moreover, very few banks permit extension of loan tenures.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Part_payments\"><\/span><b>Part payments<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Part payments are also a good way to lower the EMI payments and the interest rate. It is also a preemptive method of ensuring that the borrower is capable of making EMI payments for the entire loan tenure. When the borrower has surplus funds and an active personal loan, making a part payment can ease the financial burden.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Request_for_an_EMI-free_period\"><\/span><b>Request for an EMI-free period<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In cases of a break in the flow of income, the borrower can approach the bank and request for an EMI-free period. Banks often pay attention to such requests made by customers when they lose their job or temporarily stop their business operations. The bank gives customers a 3 to 6-month waiver on EMI payments, after which the borrower must resume EMI payments.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Every form of debt comes with risk as well as responsibility. One must ascertain the consequences of defaulting before borrowing. It is important to stay disciplined when it comes to payments of EMI in order to maintain a healthy credit history. This allows you the financial freedom to enjoy your life to the fullest.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you miss paying your Loan EMI in UAE\u00a0 and do not clear your outstanding due within the due period, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1388,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[3,9],"tags":[28,391,393,392],"class_list":["post-1387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-loans","category-loans","tag-deferral-payment","tag-emi","tag-loan-emi","tag-loan-instalment"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/1387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=1387"}],"version-history":[{"count":4,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/1387\/revisions"}],"predecessor-version":[{"id":1406,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/1387\/revisions\/1406"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/1388"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=1387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=1387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=1387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}