EMI Penalty: No penalty will have to be paid if there is a delay in paying the loan installment! Know what is RBI’s plan – you may get relief on penalty imposed by banks on emi payment delay
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According to media reports, the penalty imposed on delay in payment of loan installment will be recovered in a transparent manner. After the meeting of the monetary policy on February 8, RBI had said that a draft guideline will be issued soon in this regard. Feedback will be sought from all stakeholders on this. No penalty will be charged as penal interest. At present, penalty is charged in the form of penal interest for delay in payment of loan installment. Usually it is one to two per cent of the EMI. This amount varies in all banks. This is added to the principal amount of the loan. Therefore, it is not known how much penalty has been imposed on them for delay in payment of loan installment.
how to avoid this situation
Experts say that the penal interest depends on the size and type of the loan. Its calculation is done on an annual basis. If your annual penal interest is 24 per cent and you miss paying the monthly installment of Rs 25,000, it will be Rs 500 per month at two per cent. Now the banks will have to decide the penalty separately. Delay in installment payment also affects your CIBIL score. Recovery agents also start harassing due to repeated delay in payment.
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Normally the bank sends 60 days notice to the borrower. If the borrower does not pay during this period, then that loan is declared as NPA. After this, banks send recovery agents to recover the loan. Experts say that there is a need to remain alert to avoid this situation. If you have financial problems, you can contact the bank about this. Banks can give you a moratorium of three to six months. Experts say that you should have an emergency fund equal to six months’ salary.
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