You may be wondering how to clear your loan overdue. Having only a loan account is easy to manage but when you have multiple loans, it becomes quite problematic.
Well, we have got you covered! In this article, we will show you how to clear your loans overdue.
When you have overdue EMIs, it will certainly affect your credit score and it is not advisable to keep the overdue amount for a longer period.
Let’s say, do not go beyond 3 months. After 3 months, it will badly affect your credit score which will remain as it is.
Let’s see how to Clear Loan Overdue fast and in a more efficient way. And we will see how to get a minimum impact on the CIBIL score.
First, you need to know what kind of loan it is.
Not all loans are the same. Personal loans, home loans, car loans, business loans and student loans. These loans have their own specific purpose and their own terms and conditions.
Normally, business loans and personal loans usually have a higher rate of interest than their counterparts. You should go for clearing overdue for these loans first and then go for others.
Next, you need to find out whether there is any late payment penalty. If yes, then you need to pay the penalty before contacting your lender.
Next, you need to find out when the last payment was made.
Once you have found out the date of the last payment, you need to calculate the number of days between now and the due date.
The EMI overdue penalty which bank levies calculate on the period of the day you miss the EMI to the day you will pay up. It will calculate the total amount of EMI you have missed.
So, finding out your last payment is important to come to your total overdue amount including charges and penalties.
Then, you need to make an appointment with your lender.
If you are unable to pay off your loan by the due date, then you should contact your lender as soon as possible.
They will ask you to provide proof of income, such as bank statements, tax returns, and other forms.
Finally, you need to pay off the remaining balance.
Once you have paid the penalty for the overdue amount, your bank will advise you to pay the interest demand and principal demand as an EMI.
Pay up the overdue amount then your loan account will be upgraded to standard.
It may take a while to get it reflected on your credit report but it would get better for sure in the days to come.
Next, you need to find out whether or not you qualify for an extension.
To find out whether or not your loan qualifies for an extension, you must first contact your lender. They should provide you with a list of documents that you need to submit to them.
These documents include proof of income, employment history, and other financial records.
Once you have provided them with the required documentation, they will review your situation and determine whether or not you qualify for an extension.
If you do qualify, they will extend your payment plan until the next scheduled payment date. Re-scheduling of loan EMI is the last thing a bank would go for. As the bank has to follow certain guidelines laid down by the regulatory authority, it’s hardly seen the restructuring of loan accounts.