I have bank taken a personal loan from the bank. No installments for three months. If the fourth installment is not paid, should the entire amount (Outstanding) be paid next month
What happens if I don't pay EMI for 3 months
the following things happen.
After 30 days; Late payment charges will be added to the amount due to you. You will be given one more month. Immediately, the credit rating agencies will not be informed about your loan defaults.
After 60 days; Your information will be reported to credit reporting agencies as a defaulter. It will remain on your credit report for up to seven years. Your loan will be marked as delinquent. The late payment penalty will be added to your loan installment.
After 90 days; Your loan will be marked as in default. It will be included in your credit report. Your credit rating will take a big hit. It becomes difficult to get credit elsewhere. You will have to pay your loan installment in full.
After 120 days; The bank will outsource the work of collecting your debt to collection agencies. They may try to put some of your assets as collateral or take the amount from your salary.