Silence lets the overdue amount, bounce charges and penal charges grow each month. The missed payments reach your credit report. An account left unpaid for more than 90 days is classed as non-performing under Reserve Bank of India (RBI) rules, which makes a loan default far harder to repair.
Worked example: Farhan in Hyderabad
Farhan is 34 and works as a salaried hotel revenue analyst in Hyderabad. A pay cut took his salary to Rs. 60,000, and his CIBIL score stood at 702. Facing a possible loan default, he still owed Rs. 1.8 lakh on a personal loan at an illustrative 16% per annum, with 18 months left. He called the lender before his next due date and was offered a revised schedule of 30 months.
EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1]. Here P = Rs. 1,80,000, R = 16 ÷ 1,200 and N = months.
| Tenure | Monthly EMI (Rs.) | Total interest (Rs.) | EMI as share of salary (%) |
|---|
| 18 months (current schedule) | 11,314 | 23,655 | 18.9 |
| 30 months (revised schedule) | 7,319 | 39,575 | 12.2 |
Last updated: 23rd October, 2026
Compared with a loan default, the revised schedule is the cheaper path: it frees Rs. 3,995 a month but adds Rs. 15,920 in interest. For comparison only, a fresh loan of this size would carry a processing fee of up to Rs. 7,434. Farhan accepted the revised schedule in writing and plans to part-prepay once his pay recovers.
What can delay approval: a CIBIL score below 650 or existing EMIs that take up a large share of your income. Names or addresses that do not match across documents, and more than one loan application in the same month, can also slow it down.
Recovered from a near loan default and planning a new need? With a Bajaj Finance Personal Loan, you can borrow Rs. 40,000 to Rs. 75 lakh, subject to eligibility. Check your loan offer with your phone number and a one-time password (OTP) → apply online → receive funds within 24 hours* of approval.
