New Delhi11 minutes ago
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If you have forgotten the loan EMI due date and the payment is late by 1 day, then the first question that comes to your mind is whether this will cause the CIBIL/credit score to drop immediately?
Answer: There may not be a big impact on the credit score immediately, but it is difficult to avoid penalties and late fees.
Borrowers often assume that banks will ignore a one-day delay or that late-payment charges will not be levied if they get a grace period.
According to the rules and experts of Reserve Bank of India, even 1 day delay in loan payment can put your account in overdue category.
Will there be penalty if EMI is late by 1 day?
Yes, late payment charges may apply even for 1 day delay. Even if the bank gives you the facility of grace period, it is not bound to waive the late fee or penalty. The amount of charges depends on the terms of your loan agreement.
Banks cannot charge interest on penalty charges
Banks cannot charge interest on the penalty amount by adding it to your original loan. Penalty charges are completely different from regular interest.
When does a credit score go bad?
- Point-to-Point Reporting: Under the new RBI rules effective from July 1, 2026, banks have to provide data to credit bureaus every week. Earlier this update had to be given once in 14 days.
- Delay more than 30 days is dangerous: If EMI payment remains pending for more than 30 days, it gets highlighted in the credit bureau report and the credit score drops sharply.
- Account NPA in 90 days: If principal or interest is not paid for 90 days, then banks declare that loan account as NPA i.e. non-performing asset.
What to do if auto-debit fails?
If your EMI auto-account debit (NACH/ECS) is set up and the payment bounces due to non-balance or technical glitch in the account…
- As soon as you know, pay the dues immediately through the bank app or website.
- Banks charge bounce charges when auto debit bounces.
- Talk to bank customer care to confirm whether the payment has been updated or not.
How to save credit score after missing EMI?
- Pay Instantly: If the due date is passed, make the payment immediately without wasting any time to minimize the delay time (Days Past Due – DPD).
- Contact the lender in advance: If you feel that you will not be able to pay the EMI this month, talk to the bank before the due date and discuss options like re-structuring or moratorium.
- File a dispute over incorrect reporting: If default is visible in the credit report despite making timely payments, then immediately file a dispute with both the credit bureau and the bank.
What is DPD in CIBIL Score?
When you download your credit report, there is a DPD section. If ‘000’ is written there, it means you have made all the payments on time.
If ‘030’ or ‘060’ is written there, it means that you made the payment late by 30 or 60 days. Any number other than ‘000’ reduces your chances of getting a new loan in future.
Read this news also…
Dearness allowance of central employees increased by 3%, effective from July: The lowest employee will get the benefit of ₹ 540 and the cabinet secretary level officer will get the benefit of ₹ 7500 per month.
The Diwali of 48 lakh central government employees and 68 lakh pensioners has become a little more bright. The government has increased their dearness allowance by 3% just 10 days before the festival.
After the latest increase, the dearness allowance i.e. DA of employees and pensioners will increase to 63%. The government will spend ₹10 thousand crore on this. Read the full news…
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