What happens when I am unable to pay a personal loan because of?
You can talk to the bank / NBFC and ask it to give you an EMI holiday. After this period, you could start paying you an increased amount as your EMIs to pay off the obligation. Banks / NBFCs would readily agree to provide you this facility if you have a genuine problem and your payment record has been impeccable. You could also get you loan restructured. This could mean smaller outgo of the EMI and stretching of the loan tenure. This is an effective way to deal with a pressing financial problem looking over your present. If the crisis is too deep and you do not see any improvement in your financial status in future, you could also go for a one-time settlement. In this process, a bank / NBFC takes from a borrower a lump-sum amount and settles the case. But, for this to happen, you will have to negotiate with the bank / NBFC and convinced them. Second, if you succeed in convincing the bank / NBFC and do settle the loan, it would get reflected in your credit report. This means you might find it hard to take another loan in future.