General Consequences
Late payment expenses and punishments: If you are late in paying your EMI, a late expense will normally be charged which can be pretty high or your interest rate can get inflated with punishment charges. Once the amount has been sanctioned to your account, only then you shall start paying two-wheeler loan.
Loans Interest rate increase if there should arise an occurrence of credit card payments (unstable loans) – For unstable loans which are given to you with no security, similar to an individual loan or credit cards, the interest rate may shoot up when you miss an EMI payment or get late.
Collection agents: Usually, following 90 days of non-payment of EMI, your record will be given a default status by the moneylender, and the collection office will be advised. Following 120 days, the moneylender will erase your record from its books yet you will even now need to repay the loan add up to the collection office. Also, collection agents may pressurize defaulters to reimburse the loan, through rehashed calls, messages and individual visits.
Drop-in credit score: Defaulting a loan will contrarily affect your credit score, which will show different moneylenders that you are not adequately credit-commendable. Or then again as such, a helpless credit score will show that you can't reimburse loans appropriately.
Reduced future loan eligibility: Since the non-payment of an EMI can reduce your credit score, it will hamper your odds of getting some other loan in future. This is on the grounds that the credit score will show that you don't have a decent record of paying back loans.
Legal proceedings: in the event that you don't repay the obligation collection organization after their rehashed requests, your case can be prosecuted, and a lawyer may give a letter that goes about as a final warning for you to take care of your obligation. In the event that the obligation is viewed as substantial by the court, you will be requested to pay it alongside legal charges. Also, your default will become public news. The court can likewise permit the moneylender to put a lien on your security property, and in the event that you choose to sell it, you may need to take care of the obligation incompletely or totally with the returns.
Stressful times: A loan defaulter loses their genuine feelings of serenity as collection agents are continually after them to settle up. Additionally, the individual in question is continually apprehensive that some legal move may be made against them.
HDFC Bank two-wheeler loan is a fixed sum that you pay every month towards the repayment of your bicycle loan till the finish of residency. Most reduced EMI offered by HDFC Bank is ₹ 273 for each 10,000 loan sum at least two-wheeler loan interest pace of 14.03%.
Gaurav S. Khurana is the Founder and CEO of Dialabank and has had a great career in the Banking and Financial Services Sector. He has an experience of 18 years in the sector and has worked at Senior Roles including National Sales Head at ING Investment Management India and as the Vice President Citibank. A post-graduate from IMT, Ghaziabad. Gaurav started his career as a Named Account Manager in Xerox.
Being a part of this field for a long time now, he has written many informative articles and blogs benefiting and assisting many in making decisions regarding the policies provided by various banks and non-banking financial companies such as the HDFC Bank two-wheeler loan policy.