What Happens If You Miss an EMI?

Paying EMIs on time keeps your credit profile healthy and your financial life stress-free. Yet, it’s easy to slip up: a missed payment, a technical glitch, or simply forgetting the due date. Knowing what really happens when you miss an EMI can help you act quickly and prevent long-term consequences.

While one missed payment might seem minor, it can lead to extra charges, impact your credit score, and affect future loan approvals. With tools like a personal loan EMI calculator, borrowers can stay organised and ensure timely payments. Apps such as Kissht and other instant loan app platforms also send reminders and track EMIs, making repayment easier to manage.

What Happens When You Miss an EMI?

When an EMI isn’t paid by the due date, lenders may charge a late payment fee or penalty interest. If your EMI is missed by one day, it’s not always alarming, but consistent delays create bigger issues. Here’s what usually happens when EMI is not paid on time:

Late Payment Charges

Most banks and NBFCs apply an overdue penalty ranging from 1% to 3% of the EMI amount.

Interest on Default

Unpaid EMIs attract additional interest until cleared, increasing the total repayment amount.

Impact on Credit Score

Credit bureaus are notified if the delay crosses 30 days. A single missed EMI can lower your score by 50–100 points, depending on your credit history.

Possible Collection Calls
If multiple EMIs are missed, lenders may begin follow-up calls or send reminders before escalating the issue.

Loan Restructuring or Legal Steps

In extreme cases of continued EMI default, accounts may be flagged, affecting your eligibility for future loans.

If You Miss an EMI by One Day

Many people panic when they realise their EMI is missed by one day. In most cases, lenders provide a short grace period of 24–48 hours before imposing penalties. You can pay immediately through net banking, auto-debit, or your loan app to avoid any lasting impact. However, repeated short delays show financial indiscipline and may affect your relationship with the lender.

Always confirm the payment status directly with your lender to ensure it reflects correctly in the next billing cycle.

Consequences of EMI Default

When EMI default continues for several months, lenders consider it a sign of risk. This can lead to:

Reduced creditworthiness: Future lenders may hesitate to approve loans or credit cards.

Higher interest rates: A poor credit score often results in costlier loans.

Loss of collateral: In secured loans, assets like vehicles or property may be repossessed.

Difficulty accessing instant loans: Digital lenders may reject your instant loan app applications if previous records show missed payments.

Regular monitoring of EMIs and using alerts or auto-debit systems can help you stay on track.

How to Avoid Missing EMIs

Here are practical steps to ensure smooth repayments:

• Automate payments: Set auto-debit for EMIs through your bank or app.
• Use reminders: Most platforms like Kissht send SMS or app alerts before due dates.
• Track repayment capacity: Use a personal loan EMI calculator to check if your monthly instalments fit your budget.
• Keep buffer funds: Maintain one month’s EMI amount as a safety reserve.
• Restructure loans if needed: If you foresee delays, talk to your lender early to adjust tenure or instalment size.

These small actions go a long way in preventing EMI default and maintaining credit discipline.

How to Recover from a Missed EMI

If you’ve already missed an instalment, act immediately:

• Pay the due amount as soon as possible.
• Inform your lender about the reason for delay; transparency helps avoid penalties.
• Check your credit report to ensure the status updates once the payment is cleared.
• Set payment alerts for future instalments to avoid recurrence.

Timely communication and prompt repayment can help you maintain a clean credit record even after a missed EMI.

Using Digital Tools to Stay on Track

Modern finance apps simplify EMI tracking. You can log in to an instant loan app, check schedules, and even set auto-pay options. Many users also prefer platforms like Kissht for flexible payment management.

Before taking any new loan, use a personal loan EMI calculator to estimate affordability. Knowing your personal loan interest rate and tenure helps plan better, reducing the risk of missed deadlines.

These tools allow you to manage loans responsibly and stay stress-free even with multiple EMIs running at once.

FAQs

What happens if EMI is missed by one day?

Most lenders allow a short grace period. Pay immediately to avoid late charges and ensure the delay doesn’t reflect on your credit record.

Can one missed EMI affect my credit score?

Yes. A delay of over 30 days can lower your score and appear in your credit history. Regular late payments signal financial inconsistency.

How can I prevent EMI default?

Automate payments, track due dates, and use digital reminders from trusted platforms like Kissht or other instant loan app providers to avoid missing instalments.