Financial Planning is very essential to avoid falling into the trap. When you got home loan and you find this loan cannot be paid by yourself in the situation of losing job and feeling difficult in getting another job or whatever may be the reason, at that time you struggle a lot to pay the EMI for the loan. Under this circumstance, the people get stressed and they become panic and their situation gets worsen. Don’t worry and there is no complete loss. You can rectify this situation. Some personal finance will provide the simple steps to overcome this situation.
1. Don’t get afraid
First thing, you should know that it is not a rare situation. Number of customers is there in the bank that is default on their payments. Bank will come forward to help you to get put from this situation. Defaulting on loan is not at all the end of the road.
2. Order your papers and call your lender
File all the details of the EMI payments and the notice sent you by the bank and if any other details regarding the loan such as the loan date, interest rate and so on. You have to convince your lender by your genuine reason about your inability to pay the EMI and ask the lender about their options.
3. Consider your options to the lender
Bank has the rights to repossess your properties such as car or house legally. If you are a genuine borrower and paying your EMI at the correct time means the bank will take you into consideration and both of them can work together and can find a solution for this problem. Give assurance to the bank that you are having the intention to repay the loan and willing to find out the remedy for this. The genuine reasons will be understood by the bank and taken into consideration.
If you are having the problem in EMI payment due to the increased interest rate or by personal commitments or any other reason, the bank will restructure your loan. When your payment of EMI per month is found to be too high, then bank might offer you the fewer amounts per month. If you got this offer then you can relieve from the stress and the bank also not losing money. You are going to repay it for longer period of time. In the meanwhile you can win on some level.