New Delhi. Having one’s own home is every person’s dream and home loan plays the biggest role in fulfilling this dream. But sometimes due to loss of job, delay in salary or sudden medical emergency, home loan EMI is missed. As soon as the installment bounces, the first fear that comes to mind is whether the bank will now declare me a ‘defaulter’? Will my CIBIL Score be ruined or will the bank take over the house? If you also have this fear in your mind, then there is absolutely no need to panic. Let us tell you what exactly happens when you miss an EMI and how you should deal with it. What action does the bank take in the initial days? As soon as the date of EMI deduction from your account passes and the payment is not made, your loan account gets marked ‘overdue’ in the bank’s system. Immediately after this, you start receiving automated SMS and email alerts from the bank. You may also receive a call from the recovery or collection team within a few days. As per the rules, the bank charges you late payment fee or penal interest. Financial experts advise not to ignore phone calls from the bank during this period. Explain your problem clearly to them and give exact information about the next date of payment. The bank just wants to understand whether it is just a mistake or whether you are really facing a big financial crisis. Will missing an EMI spoil the CIBIL score? Most of the people have this misconception that even a day’s delay will cause the credit score to drop drastically. But this does not happen in reality. Banks generally do not send negative reports to credit bureaus (like CIBIL, Experian) unless the payment is delayed by more than 30 days. If you deposit your installment with penalty by the end of the same month, there is no significant impact on your CIBIL score. Banks ignore one-time mistakes, but yes, if you make it a habit and have frequent EMI bounces, your credit score can drop rapidly, making it difficult to get a new loan in future. Will the bank take possession of the house? Know the rules of RBI: The biggest fear among middle class families is of losing their house. But let us tell you that if you miss just one EMI, no recovery agent can come to your door nor can the bank send you a legal notice to vacate the house. According to the strict rules of the Reserve Bank of India (RBI), no home loan account can be declared NPA (Non Performing Asset) unless the installment payment is stopped for 90 consecutive days (three months). The process of taking possession or auctioning the house comes only after several months of continuous default and receiving several legal notices. Missing an installment does not change the interest rates or terms of your loan. Do this immediately if the installment bounces. If you have missed an EMI by mistake or out of compulsion, then first of all call the bank branch or customer care and inform them about it. Many times the installment gets stopped due to technical glitch like bank server being down or auto-debit failure, first of all check it. Your honesty and communication strengthens your trust with the bank. Arrange the money as soon as possible and clear your EMI along with late fees. Remember, missing an installment is not a crime but a financial warning. It is wise to correct it in time.