Alex007

Hi All,

I am new to this forum; I need some information in regard to the existing home loan barowwers. I have a home loan with HDFC and I have been regularly paying EMI’s (Rs 35000/ month) from past one year, I wanted to know if I do not pay my EMI for about two months consecutively do I have to pay hefty penalties? or Does Bank will cancel my home loan? or If I have to pay any compounded interests what will the effect of monetary loss? Please provide your valuable suggestions since it is very critical to me.

Thanks in advance

ks2071746

Dear friend,

HDFC is a customer friendly organisation. You may approach them about your temporary difficulties explaining your genuine problems, in delaying/skipping 2 months EMI and seek their guidance.
They will definitely help you.

ks2071746

wiseman

During normal times your bank would not have thought twice about this reschedule.

But in these times, you need to prepare your case more carefully to convince the manager that yours is a sound case. This is because everyone, especially your bank, is scared that this is the early sign of distress on the part of the borrower.

These are some of the questions you need to have convincing answers for:

1. Exactly why did you have to miss your payment?
The Bank wants to know if, a. You just had a temporary problem that will get resolved in 2 months, or b. You have a much bigger problem that will really take much longer.

Examples of the bigger problem:
1. Salary cuts
2. Possible job loss
3. Excess debt - having too many EMIs going out monthly and coupled with a declining income, the two ends do not seem to meet.
4. You have built up an excessive amount of CC debt.

Please do not be afraid of looking at it from every angle. Sooner you do it, easier it will be for you in the next few months.

Finally, if your home is higher priced than you bought it at, or if the outstanding loan amount is less than the value of the house and you see your problem as a longer-term one, do not hesitate to take the ultimate plunge and square off the home and come out with some cash in hand!

If you really have a serious problem, like cancer, hiding from it is the worst response. Take early action and save yourself a ton of trouble in the future.

Good Luck.

cheers

nabishek

Hi Alex,

Try your level best not to default.It will affect your credit ratings.It will show on your credit history and reflect poor on your credit worthiness.This may affect your any future possibility of seeking other loans and any form of credit like cards from any banks.

If you think you will come out of the current situation in 2 months.Try to somehow arrange funds to meet the commitment during this period.

Applying your mind and by not panicking You can think of various way to generate the money.

Some of my suggestion would be

1.Ask the bank to increase the tenure to reduce the EMI.
2.Put up the case to the bank and get exemption to pay only interest component for few months, reschedule the loan.
3.Transfer your loan to some other bank with lower interest rate.
4.Break PF/FD's/savings or pledge some gold to generate money.
5.Sell unwanted High end luxury items.Cut down all unnecessary expenses.
6.If the property is under construction,ask the builder to cancel the booking and transfer it to someone else and give you the money.
7.Ask the builder on the possibility of absorbing the pre-EMI burden if its under construction and if bank is doing partial disbursement and you have not started paying back the principal.
8.If the house is ready for occupation.Rent out the house and use the advance money to meet the Installment.

Meanwhile, If you are not sure that situation will change in 2, 3 months time.Contemplate pulling out immediately by selling the property and settle your home loan.You will have to close the deal fast.

Holding the house is not worth all the ordeal you will have to face in the hands of the bank.

All the Best.

allisonasson

Just saying hello to you all ..
Still a bit confused about the goings on here, but I guess I'll keep poking around.

Sansei

Hi man,

If all ur avenues of raising capital easily have dried up

Try selling ur assests like Gold, Car , Land etc.

If ur finicky abt it , try mortgaging ur Gold with a cooperative bank.
They r not stirct abt EMi , but they would want full repayment of loaned amt + interest at end of tenure. typically the rates r abt 12-14% and period is of one year.

Btwn its better to sell ur unnecessary wares for temperory problems and buy it later.

himanshupant

Is there a concept of loan holiday in any bank ?? For example suppose I have a home loan for 20 yrs . In between I go for higher studies ( break from job so no salary inflow ) , do the banks give loan holiday and resume the loan one I finish my studies ??