Let me tell you a quick story.
A close friend of mine (let’s call him Raj) took a ₹10,000 loan from a well-known loan app. Small amount. Simple EMI plan. He was responsible about it.
In fact, Raj would get reminders via SMS and app notifications. And for the first few months, he paid every EMI on time — no issues at all.
But then came a month when work got hectic.
He forgot the due date. By one day.
💥 The First Blow: Bounce Charges
The next day, he got a notification that an EMI had bounced.
₹350 bounce charge.
₹150 penalty.
₹40 platform fee.
₹100 auto-debit failure retry.
That’s ₹640 added overnight on a ₹1,200 EMI.
He was shocked.
📉 It Snowballed Quickly
Raj thought — “Okay, I’ll pay it next week.”
But the next week became two.
Then the next EMI was due.
And now, he had two unpaid EMIs, each with extra penalties.
The third EMI came around, and by now, the total outstanding amount had ballooned — not just the EMI, but late fees + bounce charges + daily penalties.
🧾 Total Due? ₹3,400+ on a ₹10,000 Loan
That’s more than 30% extra — and it was rising daily.
🧠 The Real Shock: Credit Score Warning
One email changed everything:
“Your missed payments have been reported to CIBIL. Your credit score may be impacted.”
Raj panicked. He didn’t even realize loan apps can and do report missed payments to credit bureaus.
👉 If you’re unsure which apps report to CIBIL and which don’t, check this guide:
🔗 How to Know If a Loan App Is Trustworthy in India – 2025 Guide
⚠️ What Happens When You Miss an EMI?
Here’s the short version:
| Timeline | What Happens |
|---|---|
| Day 1–3 | Bounce charges, auto-debit failure fees |
| Day 4–15 | Late payment penalty added daily or weekly |
| After 15 days | Collection reminders intensify |
| 30+ days late | Credit bureau reporting may begin |
| 60+ days late | Possible legal notices or harsh recovery calls |
💡 What Raj Learned (and You Should Too)
- Set EMI reminders manually — Don’t depend only on the app
- Avoid auto-debit from low-balance accounts — it causes bounce
- If you miss an EMI, pay ASAP — the longer you wait, the worse it gets
- Loan apps are not informal lenders — they are often tied to NBFCs and credit bureaus
- Missing even one EMI can haunt your credit score for months
✅ The Good News? It’s Fixable
Raj’s loan was small. He paid it off with penalties and started fresh.
If you’re in a similar situation, don’t ignore it.
Fix it now before it becomes an anchor around your financial reputation.
If you’re still unsure about the consequences, you must read:
🔗 What Happens If You Can’t Repay a Loan App in India – 2025 Guide
🧭 Final Thought: Missing One EMI Isn’t the End — But Don’t Let It Become a Habit
Whether it’s ₹1 lakh or ₹10,000 — debt is debt. And small mistakes can grow big if ignored.
Make a system. Be honest with yourself. And if you ever miss an EMI, don’t hide from it — tackle it head-on.
