Have you ever experienced an EMI bounce, It can be a disturbing situation, but there is no need to panic. Here are some ways you can resolve this issue.
Talk to the bank manager
First of all, you should talk to the bank manager and tell him about your problem. Assure him that this will not happen in the future. If your reason is justified then this problem can be resolved easily. In such a situation, even if a penalty is imposed by the bank, it will not be so high that you cannot pay it.
Talk about the CIBIL score
If you have bounced EMIs in three consecutive months, then your CIBIL score can be affected because the bank manager sends a report for the CIBIL score when EMIs bounce for three months. But if you have had one or two EMIs bounced, then talk to the bank manager and repay those EMIs and request the manager not to send a negative report to your CIBIL. Also, assure him that this will not happen in the future. If the CIBIL score is poor, you may face trouble in taking a loan next time.
Apply to hold EMI
If you feel that you will not be able to pay EMI for some time, then you can apply to hold EMI for some time by telling your compulsion to the manager. After some time, when you arrange the money, you can pay the amount. This will give you some relief in difficult times.
Option of arrear EMI
If you are unable to arrange money for EMI and due to this the EMI is bouncing, then you can talk to the manager for arrear EMI. The loan installment date is usually at the beginning of the month, it is called advance EMI. In this, you pay your installment at the end of the month.
Other options
If the above options do not solve your problem, you can consider the following options:-
Loan refinance: You can refinance your existing loan with a new loan, which can give you lower EMI and lower interest rates.
Loan Foreclosure: You can repay your loan in full.
Bouncing EMIs can hurt your credit score. So, try to make payments on time. If you face any issues, contact your bank and find a solution.