Missed an EMI? What Happens Next and Your Options (Day-by-Day Guide)

If you've missed an EMI, pay it, or as much of it as you can, as soon as possible and contact your lender before the next due date. One missed EMI usually means a bounce charge, a late-payment charge and a mark on your credit report. After 90 days overdue the loan becomes an NPA and formal recovery begins. The earlier you act, the more options you have.

Last reviewed: 9 October 2026. General information for borrowers in India, not legal advice on your case.

What happens after a missed EMI: the timeline

Lenders label an overdue loan by how many days it has been unpaid. Here is what usually happens at each stage, and the best move at that point.

Days overdue	Lender's label	What usually happens	Your best move
1 to 30 days	SMA-0	Bounce and late-payment charges, reminder calls and messages, overdue reported to credit bureaus	Pay the EMI and charges, or agree a payment date in writing
31 to 60 days	SMA-1	More calls, possible visits, credit score falls further	Ask for a revised schedule or temporary relief
61 to 90 days	SMA-2	Escalation, notices, possible legal notice for a bounced auto-debit or cheque	Request restructuring; get advice before signing anything
Over 90 days	NPA	Formal recovery and legal notices; settlement becomes possible	Negotiate restructuring or settlement, in writing

Two rules to know: lenders update these labels every day, and once a loan is an NPA it returns to 'standard' only when all overdue amounts are cleared, not just part of them.

What a missed EMI costs you

• A bounce charge from the lender, plus GST, and possibly your own bank's charge for the failed auto-debit

• A late-payment penal charge. Since 2024, RBI rules require lenders to levy a disclosed penal charge on loans instead of adding penal interest to your rate, and no interest can be charged on it

• Interest on the overdue amount until it is paid

• A mark on your credit report: lenders report to credit bureaus at least every fortnight, so even one missed EMI can show

• Reminder calls and, as the overdue grows, recovery calls and visits

For credit cards, RBI's card rules say an account can be reported as past due, or charged late fees, only after it has stayed past due for more than three days. Paying the minimum due keeps the card current, but interest keeps running on the rest.

Your options, from least to most damaging

1. Pay the missed EMI quickly. If money is short, pay part now and ask the lender to confirm a date for the rest by email.

2. Move the EMI date to match your salary date. Many lenders allow this on request.

3. Ask for temporary relief, such as a short EMI holiday or interest-only months. This is at the lender's discretion, so put the reason and proof in writing.

4. Request restructuring: a longer tenure and a lower EMI. It is reported as 'restructured', which is far better than a default. See how loan restructuring works.

5. Consolidate expensive debts into one cheaper loan, if your credit still qualifies.

6. Use savings or sell an asset you don't need before borrowing again. Avoid new app loans to pay EMIs.

7. Settle as a last resort once the loan is badly overdue; the account is reported as 'settled'. See how loan settlement works in India.

How to talk to your lender

• Call or email before the next due date; silence is what escalates an account

• Explain the reason in one line (job loss, medical bills, delayed salary) and attach proof

• Offer a specific plan: what you can pay now and when you can resume full EMIs

• Get any agreement by email or letter; never rely on a verbal promise from an agent

Missed EMIs on more than one loan?

Protect loans backed by your home or vehicle first, then loans where a bounced auto-debit can lead to a legal notice, then the most expensive unsecured debt. If EMIs now take more than half your take-home pay, read our guide for when you're unable to pay EMIs and drowning in debt.

Your rights while you're behind

Missing an EMI does not give anyone the right to threaten or shame you. Recovery calls are allowed only between 8 am and 7 pm, and abuse, threats or messages to your contacts are banned. If it is happening, use our step-by-step guide to stopping recovery agent harassment.

Talk to us about a missed EMI

Frequently asked questions

How many EMIs can I miss before legal action?

There is no fixed number. A lender can send a notice soon after a default, and a bounced auto-debit or cheque can lead to a legal notice within weeks. Formal recovery usually starts once the loan becomes an NPA after 90 days overdue.

Does one missed EMI affect my CIBIL score?

It can. An overdue EMI is reported to credit bureaus, and the late-payment record stays in your history even after you pay. Paying quickly limits the damage.

Can I pay a missed EMI later?

Yes. Pay the overdue amount with the charges as soon as you can, and ask the lender to confirm in writing that the account is regular again.

Can I ask for an EMI moratorium?

RBI-mandated moratoriums are rare and tied to events such as the 2020 pandemic or natural calamities. Otherwise, EMI holidays and restructuring are at your lender's discretion, so ask in writing and attach proof of your hardship.

What happens if I stop paying completely?

The loan becomes an NPA after 90 days, recovery and legal notices follow, and your credit report records the default. Loan default is a civil matter, but bounced cheques or auto-debits can bring criminal notices, so act early. See what happens when a personal loan becomes an NPA.

About the author

Written by the Loan Counsel team. Loan Counsel is a Bengaluru-based loan settlement and debt advisory firm, founded in 2025 by Mohammad Faizan, Rahil Saqlain Ali and Khasim Khan. We help borrowers across India settle personal and business loans and credit card dues legally, and deal with recovery harassment. Meet the team.