Missed Your EMI Payment? Know the Consequences

An EMI, or equated monthly instalment, is a fixed amount you pay every month to repay a loan. EMIs let you buy a phone, TV or refrigerator today and pay for it in small parts. For example, a Rs. 30,000 refrigerator on a 12-month tenure works out to an EMI of about Rs. 2,500*.

*EMIs are indicative.

Here is how EMIs work, from the day you buy a product to the day you pay the last instalment:

• You choose a tenure: You pick how many months you want to repay over. A longer tenure means a smaller EMI.
• The amount stays fixed: Your EMI stays the same each month, so you can plan it alongside rent and other bills.
• It is paid on a due date: Your EMI is usually collected automatically from your bank account through an auto-debit mandate (NACH) on the same date each month.
• Each payment builds your record: Every EMI you pay on time is reported to credit bureaus such as CIBIL, which helps your credit score.
• The loan closes on the last EMI: Once you pay all your EMIs, the loan is fully repaid and closed.

A good repayment record helps you get better loan offers in the future. If you plan to shop on EMIs, check your Insta EMI Card eligibility using your mobile number and OTP to see your pre-qualified offer.

If an EMI is not paid on time, the problem grows the longer it stays unpaid. Here is what happens when you miss an EMI, step by step:

• The loan becomes overdue on the due date: Under RBI rules, your loan is marked overdue at the end of the day your EMI was due.
• A bounce charge applies: Bajaj Finance charges Rs. 500 for each bounce when an auto-debit fails because of low balance or a mandate problem.
• A penal charge starts: Bajaj Finance charges a penal charge of 36% a year on the unpaid instalment, from the due date until you pay it in full.
• Your credit score can drop: Late payments are reported to credit bureaus, and lenders now share this data every 15 days.
• Reminder calls begin: The lender contacts you by phone, SMS or email to remind you about the overdue amount.
• Future loans get harder: A late payment on your credit report can lower your chances of getting new loans or better offers.

How much does a missed EMI cost?

Your extra cost depends on how many days late you pay. The table below shows the extra amount on a Rs. 2,500 EMI under the Bajaj Finance EMI payment rules:

Disclaimer: Figures are indicative and assume a single bounce. The penal charge is calculated as the EMI amount multiplied by 36%, multiplied by the number of days late, and divided by 365. Actual charges may differ based on your loan terms. Please check your loan agreement or the Bajaj Finance app for exact details.

When does a missed EMI become a default?

RBI rules group overdue loans by how many days the payment is late. Here is how your loan status changes as the days go by:

→ Real-world example: Rohit, a salesman in Indore, pays a Rs. 2,500 EMI for his phone. His salary came 10 days late one month, so his EMI bounced. He paid the bounce charge plus about Rs. 25 in penal charges. Because he cleared it quickly, his loan stayed in the SMA-0 stage.

Most missed EMIs happen because of poor timing, not a lack of money. These simple habits can help you pay every EMI on time and keep your credit score safe:

• Keep money in your account a day early: Make sure your EMI amount is in your bank account at least 1 day before the due date.
• Set reminders: Add a phone reminder 3 days before each due date, especially if your salary date changes.
• Pay any overdue amount right away: Pay through the Bajaj Finance app as soon as you notice a bounce. This stops the penal charge from growing.
• Keep your EMIs within budget: Try to keep all your EMIs below about 40% of your monthly take-home pay.
• Build a small emergency fund: Savings equal to 3 months of EMIs can cover you during a job change or medical emergency.
• Talk to your lender early: If you expect trouble paying, contact the lender before the due date to understand your options.

→ Pro tip: When you buy on EMIs, choose a tenure that keeps each instalment comfortable. For example, a Rs. 30,000 purchase costs about Rs. 2,500 a month over 12 months but only about Rs. 1,250 over 24 months*.

*EMIs are indicative.

A missed EMI is common and usually easy to fix if you act fast. Here are the main points to remember about missed EMI payments and how to protect yourself:

• One missed EMI is not the end: Paying within a few days keeps your penal charge under Rs. 25 on a Rs. 2,500 EMI, on top of the bounce charge.
• The clock starts on the due date: Charges begin from the day your EMI is due, not from the day you notice it.
• Default starts after 90 days: Your loan is treated as a default only after more than 90 days of non-payment.
• Your credit report updates fast: Lenders report every 15 days, so clearing dues quickly matters.
• You are protected by RBI rules: Lenders cannot charge interest on penal charges, so your penalty does not snowball.
• Good habits pay off: On-time EMIs build a strong credit record, which helps you get better offers in the future.

The Bajaj Finance Insta EMI Card is a pre-qualified card loan that lets you buy products on Easy EMIs. It is not a credit card. You can use it at partner stores such as Croma, Reliance Digital and Vijay Sales, or on Amazon and Flipkart, and choose a tenure that keeps your EMIs easy to manage.

The card is built to help you plan your purchases with EMIs that fit your monthly budget. Here are its key features:

• A pre-qualified card loan offer of up to Rs. 6 lakh.
• A repayment tenure you choose across 3 to 60 months.
• A card you can use on Amazon and Flipkart, and at over 1.5 lakh partner stores across more than 4,000 cities.
• A one-time joining fee of Rs. 530*, with zero annual fee from the second year onwards.
• A zero down payment facility on select products and during festive season offers.

Check your Insta EMI Card eligibility online using your mobile number and OTP. If you are eligible, you can apply instantly and start shopping for your preferred electronics, appliances or furniture easily and affordably.

*Inclusive of applicable taxes.

You can apply for the Bajaj Finance Insta EMI Card fully online with your PAN, Aadhaar and registered mobile number. Follow these steps to get your card:

1. Enter your 10-digit mobile number and click on ‘GET IT NOW’ on the Insta EMI Card page.
2. Enter the OTP and submit.
3. Enter your full name and click on ‘Yes, Auto-Fetch Details’.
4. Verify your pre-filled personal details and click ‘CONTINUE’.
5. Check your pre-qualified card loan offer amount and click ‘CONTINUE’.
6. Review your wallet setup details and verify the OTP.
7. Complete identity verification by confirming your current residential address.
8. Pay the one-time joining fee of Rs. 530 (inclusive of applicable taxes).
9. After successful payment, view your card details on the Bajaj Finance app.

Note: The process may differ based on whether you are a new or existing Bajaj Finance customer.

Also read: How to apply for the Insta EMI Card

You can use the Insta EMI Card at a partner store or online on Amazon or Flipkart. Both options take only a few minutes, and the steps for each are given below.

At a partner store

Using the Bajaj Finance Insta EMI Card at any of over 1.5 lakh partner stores, such as Croma or Vijay Sales, takes under 5 minutes. Follow these steps at the billing counter:

1. Browse and select the product you want to buy.
2. At checkout, ask the store executive to process the payment through the Bajaj Finance Insta EMI Card.
3. Share your registered mobile number and card details.
4. Choose a repayment tenure across 3 to 60 months that fits your monthly budget.
5. Authenticate using the OTP sent to your registered mobile number.
6. Your purchase is approved, and you can take your product home.

Online on Amazon or Flipkart

You can also shop from home on Amazon or Flipkart. The steps below show how to choose the Insta EMI Card as your payment method at checkout:

1. Add the product to your cart on Amazon or Flipkart.
2. At checkout, select the Bajaj Finance Easy EMI option.
3. Enter your Insta EMI Card details and registered mobile number.
4. Choose your preferred repayment tenure across 3 to 60 months.
5. Confirm using the OTP sent to your registered mobile number.
6. Your order is placed, and EMI deductions begin from the next billing cycle.

You can also check your Insta EMI Card eligibility online in advance by entering your mobile number and OTP. This helps you plan your purchase better.

The Bajaj Finance Insta EMI Card offers several advantages beyond just splitting payments. From flexible tenures to wide acceptance, here are the key benefits that make this card a practical choice for everyday purchases.

Also read: Features and benefits of the Bajaj Finance Insta EMI Card

Before you apply, it helps to check whether you meet the basic eligibility requirements. The Bajaj Finance Insta EMI Card is open to most working Indians, and the criteria are simple to understand at a glance.

• Nationality: Indian Citizen.
• Age: 21 years to 70 years.
• Credit score: A healthy credit score per Bajaj Finance policies.
• Income: A steady, regular source of income.
• Documents: No physical documentation required when applying online. Only the following details are required: PAN and Aadhaar number.
• Form 60: In case of non-availability of PAN, Form 60 is required.

Also read: Eligibility criteria for the Insta EMI Card

Explore more: