When you take a loan, you have to pay EMI for it every month. If you default in paying this EMI, then its compensation has to be paid in the form of a penalty. If you are facing any problem in taking a home loan, then you can take a joint home loan. It is more easily available than a normal home loan and the loan amount also becomes higher. Generally, people take any kind of loan alone, but sometimes depending on the circumstances, two people finance the loan together. One of them is the main borrower and the other is a co-applicant. This is done so that the debt burden can be reduced a little.

However, if one of the two is unable to pay his EMI, it impacts the other as well. Today we will tell you how non-payment of MI by co-borrower can create problems for you. This includes penalties, bad credit scores, and many other things. Let's take a look at this.

Penalty

First of all, you have to face a bank penalty. If you delay paying the EMI for 24 hours, you get a message from the bank asking you to pay the EMI as soon as possible. In co-borrower cases, this message goes to both borrowers. The penalty can be 1 to 2 percent of your loan.

Credit score

Not repaying any kind of loan impacts your credit score. A bad credit score means that it will be both difficult and expensive for you to get a loan in the future. Any bank checks your credit score before giving you a loan. If you have defaulted on the loan taken earlier, it will not be easy for you to take a further loan.

Nonperforming asset

If you do not pay this EMI to the bank for 90 days, then your loan is considered a non-performing asset or NPA. In such a situation, the bank can also auction your property. Therefore, if you feel that it will take some time to repay the EMI or you are facing any problems, then it would be best that you go and talk to your bank official. You can ask him for some time.

Prepayment

If you feel that your EMI burden is too high and your loan is very big then you can use prepayment. In prepayment, apart from EMI, you also pay some amount to the bank from time to time. By this amount the principal amount of your loan reduces and ultimately the EMI also gets reduced.

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