An overdue payment occurs when a scheduled EMI (Equated Monthly Installment) on a loan is not paid by the due date. In home loans, even a single missed payment can trigger penalties, increased interest rates, and a negative mark on your credit history. Consistent overdue payments could lead to serious repercussions like loan default or legal action.
Lenders track overdue payments closely, as they reflect a borrower’s financial reliability. A history of late payments can make it difficult to secure loans in the future or may result in higher costs of borrowing. Moreover, in extreme cases, lenders may initiate a CIBIL suit to recover the unpaid amount, adding legal complications to the borrower’s financial troubles.
To avoid overdue payments, it’s important to plan monthly finances, set reminders, and communicate with lenders if you're facing hardships. Being proactive helps protect your credit score and ensures smoother financial management, keeping you on track toward achieving your homeownership dreams.
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