Clear your overdue EMI
Clear your overdue EMI today – stop penalties & fix your credit
*Overdue charges include penalty interest and bounce fees as applicable. T&C apply.
In Summary
An EMI becoming unaffordable doesn't mean your options have run out, but it does mean the clock is running, reaching out to your lender before you miss a payment puts you in a genuinely stronger position than reaching out after.
- A part-payment doesn't automatically mean your EMI is covered. Check what remains due after any part-payment, since it may not fully clear a scheduled instalment the way you'd expect
- Never dip into essential household money just to make a payment. If a part-payment would compromise your basic living expenses, it's not the right move, address the underlying affordability issue with your lender instead
- A lower EMI through restructuring can still cost you more overall. Extending your tenure eases the monthly pressure but stretches out the period you're paying interest, always compare total repayment, not just the monthly figure
- Restructuring isn't guaranteed just because you ask. It depends entirely on your lender's assessment of your loan type, repayment history, and circumstances, go in with realistic expectations, not an assumption of automatic approval
If your EMI has become difficult to manage, review your budget honestly first, then contact Bajaj Finance early to discuss restructuring or other options, acting before you miss a payment gives you meaningfully more room than acting after.
Understanding why your EMI is higher than your monthly income
An EMI can become difficult to manage when your monthly repayment obligations are higher than the income available after meeting essential household expenses. This does not necessarily mean that the loan amount itself has changed. A change in income, rising living costs, additional debt or unexpected expenses can reduce the amount you can comfortably allocate towards your EMI each month.
This situation can arise when:
- Your income has reduced or stopped.
- Your household expenses have increased.
- You have taken on additional loans or credit obligations.
- Several EMIs fall within the same period.
- The loan tenure or repayment structure no longer fits your current financial position.
- Unexpected expenses have reduced the amount available for loan repayment.
The first step is to compare your total monthly income with essential household expenses and all existing debt repayments. This can help you understand whether the difficulty is temporary or whether your repayment arrangement may need to be reviewed based on your current financial position.
What options are available when you cannot afford your EMI?
Borrowers who cannot afford their EMI should assess their repayment position early and discuss available solutions with their lender rather than allowing dues to remain unpaid. Depending on the loan type, lender policies and individual circumstances, possible options may include:
Review your monthly budget
Identify essential expenses, discretionary spending, and all existing debt payments. This can help determine how much you can reasonably allocate towards your EMI without compromising essential needs.
Request a repayment review
If your financial circumstances have changed, contact your lender and explain the situation. The lender may assess whether any repayment option is available under the applicable loan terms.
Consider loan restructuring, where available
Restructuring may involve changing certain repayment terms to make the repayment arrangement more suitable to the borrower's current circumstances. It is not automatic and requires lender assessment and approval.
Loan restructuring is subject to your lender's assessment and approval. Eligibility criteria vary based on your loan type, repayment history, and current financial situation. Contact your lender directly to understand whether restructuring is available for your loan.
Consider part-payment if you have surplus funds
A part-payment can reduce the outstanding principal, subject to the loan terms. A lower principal may reduce the interest payable over the remaining repayment period, depending on how the lender recalculates the loan.
Do not use money required for essential household expenses merely to make a part-payment. First assess whether the payment is financially sustainable.
How can loan restructuring help with high EMI?
Loan restructuring may modify the repayment arrangement, subject to lender approval, and can potentially change the EMI, tenure or other applicable terms. Restructuring may be considered when a borrower faces a sustained change in financial circumstances, and the existing repayment arrangement is no longer manageable. The lender assesses the request based on factors such as the loan type, repayment history, and current financial situation.
Before accepting any revised arrangement, check:
- Revised EMI amount
- Revised repayment tenure
- Total repayment amount
- Applicable charges
- Changes to the interest or repayment structure
- Any conditions attached to the revised arrangement
A lower EMI may provide greater monthly cash-flow flexibility, but extending the repayment period can increase the time over which interest is payable. The overall cost should therefore be considered, not just the monthly instalment. The terms of any restructuring arrangement, including revised EMI amount, tenure, and applicable charges, are determined by your lender at the time of assessment. No standard terms can be guaranteed in advance.
How can you manage a high EMI through Bajaj Finance platforms?
Eligible borrowers can use Bajaj Finance digital platforms to review loan information, check outstanding dues, and access available repayment or service options.
If your loan is serviced through Bajaj Finance, follow these steps:
- Open the Bajaj Finance App or visit the My Account portal.
- Sign in using your registered mobile number and complete OTP verification.
- Select the relevant loan account.
- Review the outstanding amount, EMI details, and available account services.
- Check whether any applicable repayment or service option is available for your account.
- If you need assistance, use the available support facility to raise a request and provide the relevant details.
The services available through the platform can vary by loan type and account. Do not assume that raising a request changes your repayment obligation unless the lender confirms revised terms.
What happens if you stop paying your EMI?
Stopping payment on an EMI without an agreed repayment arrangement can cause the instalment to become overdue and may affect your credit history. If the EMI is difficult to manage because of reduced income, increased expenses or other financial commitments, it is important to review the situation and explore the available repayment options rather than allowing the overdue amount to continue. DMS guidelines require credit consequences to be stated clearly without overstating them.
| Consequences | Possible impact |
| EMI remains unpaid | The unpaid amount continues as a due under the applicable loan terms. |
| Applicable charges arise | Additional charges may apply based on the loan agreement and account terms. |
| Overdue period increases | Continued non-payment can cause the overdue period to increase. |
| Credit information is reported | Repayment delays may be reported to credit information companies, as applicable. |
| Recovery follow-ups continue | Continued non-payment may lead to recovery follow-ups in accordance with applicable policies and guidelines. |
| Further recovery action | Prolonged non-payment may result in further recovery action through the applicable process. |
A longer repayment delay can increase the financial burden and may affect your ability to access credit in the future. If you are finding the EMI difficult to manage, review your outstanding dues and available repayment options at the earliest. If you have received a legal notice, do not ignore it. Check the notice and outstanding amount carefully, and use the lender's official channels to seek clarification or understand the next steps.
How can you avoid your EMI payment difficulties?
Regularly reviewing your income, expenses, and loan commitments can help you identify repayment pressure early and plan for upcoming EMIs.
- Review your finances: Check your monthly income and essential expenses regularly to understand your available repayment capacity.
- Plan EMI payments: Include EMI due dates in your monthly budget and plan your funds accordingly.
- Maintain sufficient balance: Keep enough funds in your linked bank account if you use an auto-debit facility for EMI payments.
- Manage additional borrowing: Avoid taking on new debt when your existing EMIs are already difficult to manage.
- Monitor your loan account: Check your loan account periodically for outstanding dues and repayment updates.
- Communicate changes early: Contact the lender promptly if your income or financial circumstances change to understand the options available under your loan terms.
- Keep repayment records: Save payment confirmations, repayment requests, and records of any revised terms or arrangements.
Taking these steps can help you identify repayment difficulties before they result in prolonged overdue amounts. If your financial circumstances change, acting early can help you understand the available options and manage your repayment obligations more effectively.
Loan support made easy - read on
Not your nearest branch?
Frequently Asked Questions
EMI Exceeds Income – Options
Immediate Steps
What should you do if your EMI becomes difficult to afford after a change in income?
Review your essential expenses and existing debt obligations to understand the repayment gap. Contact your lender promptly to discuss the options available under your loan terms before the EMI remains unpaid.
Does paying part of an EMI prevent the account from becoming overdue?
A part-payment does not necessarily mean that the scheduled EMI has been fully paid. Check your loan account to confirm the remaining amount due and understand whether the account has been regularised.
What is loan restructuring and can it reduce my EMI?
Extending the tenure may reduce the monthly EMI, but it can increase the period over which interest is payable. Review the revised EMI, tenure and total repayment amount before accepting any change.
What documents may be needed when requesting a repayment review?
The documents required depend on the lender, loan type and reason for the request. You may need information relating to your income, expenses or changed financial circumstances. Confirm the requirements through official channels.
How should you prioritise EMIs when you have multiple loans?
List all your EMIs, due dates, outstanding amounts and essential monthly expenses. Avoid allowing any account to remain unpaid without understanding the consequences and contact the respective lender if your repayment capacity has reduced.
What should you check before accepting a revised EMI arrangement?
Check the revised EMI, repayment tenure, total repayment amount, applicable charges and any changes to the interest or repayment structure. Ensure that you understand the revised terms and conditions before agreeing to the arrangement.
What happens if your repayment difficulty continues after restructuring?
If the revised arrangement remains difficult to maintain, contact the lender promptly rather than allowing further payments to remain overdue. The lender may review your circumstances and explain any options available under the applicable terms.
Does a temporary income disruption affect your ability to request repayment support?
A temporary reduction or interruption in income may affect your repayment capacity, but the availability of any repayment support depends on the lender's assessment, loan type and applicable terms. Contact the lender to understand the available options.
What should you do after submitting a request for repayment assistance?
Keep the request reference and supporting documents, and monitor your loan account for updates. Continue to follow the existing repayment schedule unless revised terms have been formally confirmed by the lender.
More Articles
Disclaimer
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.
*Terms and conditions apply.