If you miss three personal loan EMIs, your credit score could suffer. Missing three or more EMIs can result in the following:
Late Payment Charges: These are levied on the outstanding EMI for each month you miss.
Legal Action: If you miss payments for a long time, the lender may sue to collect. This includes suing, seizing assets, or hiring a debt collector. Legal action can damage your credit and increase fees.
Default Status: If you miss three or more EMIs, your personal loan account becomes an NPA. This will lower your credit score.
Recovery Agents: A debt recovery agent hired by the lender may threaten and harass you and your family.