What Happens When You Miss an EMI in India?
When your EMI payment is late — whether through a NACH/ECS bounce or a manual missed payment — your bank charges three types of penalties:
- Late Payment Fee — A flat fee ranging from ₹300 to ₹1,500 depending on the bank and loan type.
- Penal Interest — An additional interest (12%–36% p.a.) charged on the overdue EMI amount for each day it remains unpaid.
- GST at 18% — Applied on both the late fee and penal interest.
Beyond direct costs, your CIBIL score takes a hit — typically 50-100 points for a single missed EMI, staying on your report for 24 months.
How to Use This Calculator
- Enter your EMI amount and outstanding loan balance.
- Select your loan type — penalties vary by product.
- Enter days late — how many days past the due date.
- Enter bank charges — late fee and penal interest rate from your loan agreement.
- Enter your CIBIL score (optional) — to see the estimated impact.
Example: ₹15,000 EMI — 15 Days Late
- Late fee: ₹500
- Penal interest: ₹15,000 × 24% ÷ 365 × 15 = ₹148
- GST on fee: ₹90 | GST on penal interest: ₹27
- Total penalty: ₹765
- CIBIL impact: -50 to -80 points (if reported after 30 days)
Bank-Wise Late Payment Charges (Indicative)
- SBI: 2% of EMI or ₹500 (whichever is higher) + 2% p.a. penal interest
- HDFC: ₹300–₹600 per instance + 24% p.a. penal interest
- ICICI: ₹500–₹750 per instance + 2% per month on overdue
- Axis: ₹500–₹1,000 per instance + 24% p.a. penal interest
- Bajaj Finance: ₹600–₹1,200 per instance + 3% per month on overdue
Note: Charges vary by loan product and may change. Always check your loan agreement.
Why This Calculator Matters
- Hidden costs — GST on penalties is often overlooked, adding 18% to the charge
- Compounding damage — penalties stack up across multiple months
- Credit score — the CIBIL impact lasts 2 years and affects future borrowing costs
- Prevention — seeing the true cost motivates timely payment planning
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