Home Loan EMI: Land prices are increasing every day. It is not easy to buy a house in metros with rising prices. A big budget also means that you may have to take a home loan (Home Loan EMI), sometimes you may have to pull yourself back financially to make it affordable. That is, expenses may have to be reduced.

Looking at the rest of the loans, home loans or housing loans are for long years. During the loan tenure, losing a job or a medical emergency at any time can stop your loan payment. If you are finding it difficult to repay the EMI on your home loan, then some steps can help you salvage the situation. But before that, one should know what happens if the home loan is not repaid.

Why do banks take action?

Actually, the bank takes 5 types of action on the customers. This action does not happen at once, but happens one after the other. This action is taken when the EMI is not paid or when the defaulter is declared. First, if you do not pay the first EMI, the bank does not consider it serious but starts monitoring you.

Second, if the second EMI is not paid continuously, the bank sends you a payment reminder. Third, if 3 consecutive EMIs are not paid, the bank sends a legal notice asking to pay the outstanding amount.

Under the fourth action, if the customer does not pay 5 consecutive EMIs, the bank sends a notice of auction of the house. It warns that the outstanding amount should be deposited, otherwise the house will be sold. Fifth, if the customer does not pay the money despite these notices, the bank auctions the house, sells it, and takes out its outstanding amount.

Adopt this way to avoid this.

If you are not in a position to repay the loan (latest loan updates), then contact your debtor. Tell the bank that this has never happened before and you have been repaying all the loans on time. Give all the documents to prove this. If necessary, give the papers of your investments to the bank as collateral.

Tell the bank how the income situation can improve in the next 3-6 months. Restructure your loan by asking the bank for a three-month grace period.

Or if unable to pay more money, increase the loan tenure. If you had opted for a floating-rate loan, the increase in interest rates would have increased your loan tenure. If you cannot afford further increases in interest rates, choose a loan payment period at a fixed rate.

It will be right to give the house on rent.

If the area where you are living has a good possibility of earning rental income, then rent the house. Use the rental money to pay a part of your EMI. It is better that you sell the house than letting the bank auction it.

Auctions often do not fetch a good price. On the contrary, if you sell it yourself by informing the bank, you are likely to get a better price. The amount received from the sale can help repay the outstanding loan.

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