- Curious to know what happens if you don't pay your personal loan?
- Not only the debt pile up but you also have to face legal complications
- While all these are consequences, what are the solutions? Read here to know the same
You could face serious consequences if you don’t make personal loan payment. Non-payment of the loan can dent your credit record and put you in the mount of heavy debts. So if you don’t want to face such financial issues then you must pay your loan on time. Also, the lender may take a legal action against the borrower if you don’t make the payment. Check out in detail the consequences you may face on failing to pay your loan dues.
Low CIBIL: The due payment or non-payment directly affects your CIBIL score. Your score will decrease every month you don’t pay the loan installment.
No Future Credit Prospects: If you don’t make personal loan payment, you are not eligible for any loan or credit card in the future. Because your bad repayment record and high dues make the lender doubt over your creditworthiness.
High Debts: Not only your repayment record will worsen but you are also burdened with high interest. As personal loans are unsecured, the interest rate generally remains higher compared to secured loans. Plus, with late payment charges, the debt keeps on mounting and causes headache for you.
How to Cope with These Financial Problems?
You can manage personal loan payments efficiently by reducing your monthly expenses. For example, if you have a monthly income of INR 30,000 and the loan EMI is INR 10,900. Then you can reduce your spending to make loan payment on time. Choose a suitable payment method so that the amount will be deducted directly from your account. So use these methods to do away with high debts and legal complications.