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Can not fill the EMI of home loan, will the bank take away your house? Know what the rule says

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If you miss one or two EMIs, the bank does not take immediate action. If you miss three EMIs in a row, the bank issues a notice to you first.


Due to Corona, millions of people lost their jobs, whose salaries are left, their salary was cut. Somehow people were managing that once again the corona outbreak has increased significantly. In such a situation, the risk of going to the job again and salary cut has increased. In this difficult situation, it is becoming difficult for people who have taken home loans to get EMI. In such a situation, the question arises that if you are not able to pay the EMI of the home loan, then what will happen?


Most of the people taking home loans are such people whose major part of income goes as EMI every month. In such a situation, if the main earner of the household becomes unemployed, then the difficulties increase considerably. If the same happens with you, then understand that the interest amount is added to your overall balance every month. This will increase the tenure of the loan, as well as many more difficulties may come. In such a situation, first of all contact your bank and tell them openly about your situation. If your credit history is good and you have paid EMI continuously, then the bank will definitely give you an extension. The bank also has the right to extend the duration of your home loan, which will reduce the EMI.


LIC Home loan

If you miss one or two EMIs, the bank does not take immediate action. If you miss three EMIs in a row, the bank issues a notice to you first. If the borrower does not pay EMI for six consecutive months, the bank will give you a grace period of two months for the last time so that you can issue EMI again. Even after all these efforts, if EMI is not deposited, then the bank declares such loan as loan performing asset i.e. NPA. Now, the bank can seize your property and proceed with the auction process.


The SARFAESI Act 2002 empowers banks to auction property of borrowers. Through this, the bank reduces the burden of its NPA. For this, the bank does not need approval from any court. But the bank first tries to ensure that the EMI starts again in some way. When all the options are closed, the bank goes ahead with the auction process of any property.

Home Loan


ICICI Home Loan

Until the day the bank announces the auction date, the borrowers have a chance to acquire their property. They can stop the process of this auction by making a double payment to the bank. Apart from this, due to the announcement of the auction process by the bank, some charges will also have to be paid separately.

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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