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Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Jun 03, 2025Hindi

Sir I have EMI due on 5 th. I have a loan for 18 months and I pay 10 EMI but now I am not able to pay full amount so I request to bank from 3 months to increase the Loan tenure. I talked about it from customer care to Bank PNO but noone gonna help me. Somehow I paid from last 3 months but now I am not able to do it. So can you tell me now can I do?

Ans: I understand your concern about managing EMI when facing repayment difficulty. You have made 10 EMIs and now struggle to pay on time. Let’s examine your options carefully, with clear structure and actionable guidance.

Understanding Your Current Loan Issue
You have an 18?month loan tenure.

You have paid 10 EMIs so far.

You are struggling to pay the next EMI, due on 5th.

You have requested to extend tenure for the last 3 months.

Customer care and banking PNO have not assisted.

Raising this issue shows prompt action. That is appreciated. Now, let us explore steps you can take next.

Immediate Steps to Prevent Default
Contact Bank Branch Manager Directly

Visit your branch in person.

Speak to the loan officer or manager.

Explain your income and repayment issue.

Raise a Formal Written Request

Submit a letter/email to bank.

Mention your loan details clearly.

Request extension or moratorium formally.

Escalate via Bank’s Nodal / Grievance Cell

If branch doesn’t help, contact toll-free or email grievance cell.

Request escalation with your reference number.

Check if Loan is Eligible for Moratorium

Central Bank allows EMI holiday for genuine hardship.

Ask bank about temporary deferment.

Confirm if interest capitalisation applies.

These actions help you raise visibility within the bank.

Alternatives to Consider If Bank Doesn’t Cooperate
If bank denies tenure extension or moratorium:

Offer Partial EMI Payment

Pay as much as you can this month.

Show intent to repay.

Bank is more cooperative when you pay something.

Seek Loan Restructuring

Request to convert term loan amount into a part-equated monthly instalment loan

Or increase tenure by a few months.

Look at Credit Card / Personal Loan Transfer

Transfer balance to a lower-rate personal loan or credit card EMI scheme.

Check fees and interest before switching.

Peer-to-Peer (P2P) Loans

Short-term crowdloan platforms may offer lower interest.

But these involve careful research and caution.

All options must consider your current cash flow and ability to repay.

Impact of Missed EMIs and Defaults
Even a single missed EMI affects credit score.

This can impact future credit eligibility.

Late payment attracts penal charges.

If missed for 2–3 months, bank may classify loan as NPA.

Legal recovery or asset seizure could follow.

So, prioritise avoiding default by seeking solutions now.

Reassessing Your Repayment Plan
You have six EMIs remaining. Let’s structure a plan:

Calculate Remaining Balance

Check total loan amount left after 10 EMIs.

Check Your Cash Flow Needs

How much can you realistically pay per month?

Consider income vs expenses this month.

Propose a New EMI Schedule

Ask bank to reduce EMI amount and extend tenure.

For example, spread remaining balance over 9–12 months.

Banks are more open to realistic repayment proposals than outright default.

Using Emergency or Liquid Funds If Available
If you have cash savings or liquid investments:

Use them to pay the EMI to avoid default.

Then top-up those funds later gradually.

Keep in mind liquidity and financial discipline.

This helps preserve your credit history and avoids penalties.

Preparing Documents and Evidence
When requesting tenure extension or moratorium:

Income Proof: Latest pay slips or bank statements.

Expense Statement: Current essential outgoings.

Request Letter: Clearly stating hardship and proposed plan.

When you visit branch or grievance cell, submit copies.

What You Can Do if Bank Still Doesn’t Help
If escalation fails, you have these recourse options:

Reserve Bank of India (RBI) Complaint

File complaint using RBI’s Banking Ombudsman portal.

It addresses delay or refusal of request.

Consumer Forum or District Court

If damage is significant, you can approach consumer court.

These steps are last resorts. Start with inner escalation first.

Building a 360?Degree Financial Resilience Plan
This incident reveals a need to strengthen overall cushions:

1. Build Emergency Fund

3–6 months of expenses kept in liquid instruments like sweep FDs or ultra-short mutual funds.

2. Plan Short-Term Goals Before Long-Term

Avoid taking additional high-interest loans just for emergencies.

3. Do Regular Cash Flow Checks

Review your monthly income vs costs.

Forecast EMI demands in advance.

4. Keep Alternate Credit Options Open

Maintain a small credit line or 0% EMI credit card.

Good for emergencies, not for overspending.

5. Maintain Health and Life Cover

Avoid large outflows due to medical emergencies.

Having insurance avoids sudden cash strain.

Preventing Similar Situations in Future
For future financial stability:

Only borrow when necessary

Avoid unsecured loans unless absolutely needed.

Set EMI limits under 30–40% of earnings

This preserves liquidity and reduces stress.

Monitor loan amortisation schedules

Make sure you understand loan end date and costs.

Build savings before repayments

Keep a buffer equal to one EMI amount in your bank.

Summary of Immediate Action
Visit branch manager with written hardship request.

Ask for simple tenure extension or moratorium.

Offer to pay partial amount if full EMI is not pocketable.

If bank obstructs, escalate to grievance cell.

In absence of resolution, file grievance to RBI.

Avoid default to preserve credit and avoid penalties.

Why You Should Act Now
Timely request improves chances of approval.
Partial payment shows sincerity and helps goodwill.
Bank may restructure instead of declaring default.
You keep credit score healthy for future loans.

Final Insights
Don’t delay in approaching the branch manager now.

Be polite, direct and truthful about hardship.

Keep a record of all communications and documents.

Explore repayment restructuring or moratorium options.

If needed, escalate via grievance channels.

Use this as a trigger to build an emergency cushion.

Future-proof your monthly cash flow to avoid similar issues.

You are taking initiative by requesting extension. With proper follow-through, you can regain repayment control and preserve financial health.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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