How to tackle with the bank since Loan EMI is pending

891 votes

Hello,

The best option for you would be to negotiate with the bank. HDFC will probably be ready to talk you over this issue rather than going through the tiresome process of taking over your asset. You can reach out to them with the past documents of EMI payments for this loan or the previous loans that you have cleared. you have following options in hand:

1) Ask for a grace period - You can seek a grace period from the bank in order to continue with the EMI payments. You can clearly explain to them the reasons for not being able to pay EMIs such as loss of job or dip in sales of business, etc. Bank may be willing to give you the grace period for resuming EMI payments with some penalty.

2) Loan refinancing - There could be a case where the interest rates have gone up and hence you may not afford the increased EMI. You can talk to the bank to restructure or refinance your home loan. They can increase the tenure of the loan as a result of which your EMI would go down. Though this will result in you paying more, it will be better than losing possession of the property.

3) Liquidating your investments - This will be the final step that you can resort to, if the above options do not work out for you. You can liquidate your existing investments such as deposits or mutual funds to pay the EMIs. You can also use this amount to make part payment for the loan which will reduce the EMI going forward.

Regards

Advocate Anilesh Tewari LawRato

762 votes

After getting a legal notice you can reply properly to your legal council and write the details and your problem about why you cannot pay the emi properly and then bank have two options of giving you 1 year time and other one that bank can auction urban properate under the provision of Surfasi Act

Advocate Lakshay Kumar Singh LawRato