Missed Your Navi Loan EMI? Here’s What You Need to Know and Do

Life can be unpredictable, and at times, this may lead to a missed loan EMI. While it’s important to address such situations promptly, it’s not irreversible — and support is always available to help you get back on track. At Navi Finserv Limited (Navi), we understand that financial hiccups can happen. This guide will walk you through the consequences of a missed EMI, how you can clear your overdue amount, and the associated penalty charges.

Consequences of a Missed EMI

Missing an EMI payment can have a series of consequences that can impact your financial health. Here’s a breakdown of what typically happens:

1. Negative Impact on Your Credit Score: Your repayment history is a significant factor in calculating your credit score (CIBIL). A missed EMI, when reported to credit bureaus, can lower your score. A lower credit score can make it more challenging and expensive to get loans or credit cards in the future.
2. Incurs Additional Charges: When a payment fails, you face penalties from two sides.
   1. First, Navi will levy late payment fees (EMI Penalty Charges).
   2. Second, if your payment was set up via an auto-debit (e-NACH mandate), your bank may also charge you a penalty (bounce charges) for the transaction failure due to insufficient funds.
3. Payment Reminders: You will receive reminders from Navi via SMS, email, and phone calls to inform you about the missed payment and guide you on how to clear it.
4. Difficulty in Securing Future Credit: A history of missed EMIs can act as a red flag for lenders when you apply for new loans or credit cards, potentially leading to rejection or higher interest rates.
5. Potential trigger of Legal Action and Involvement of Collection Agencies: If payments are missed, Navi may initiate strict recovery procedures:
   1. Navi will send legal notices to customers for EMI overdue payments
   2. Navi involves collection agents (tele and field) that will contact you for payment.
   3. In persistent cases, it could escalate to legal action, such as filing a suit to recover the outstanding amount, which is a stressful and costly process.
6. Creates a Strained Relationship with Lenders: Trust is the foundation of any lending relationship. Missing payments can strain your relationship with Navi. This can make it difficult to receive support in the future, such as qualifying for a top-up loan, getting a favourable loan restructuring plan, or being considered for other financial products.
7. Causes Psychological and Emotional Stress: The financial strain of an overdue loan doesn’t exist in a vacuum. It can cause significant mental and emotional stress. The constant reminders, the worry about growing debt, and the fear of legal action can lead to anxiety, sleepless nights, and affect your overall well-being. Acknowledging this stress is the first step to seeking a solution.
8. Hampers Future Employment Prospects: It may come as a surprise, but your credit history can affect your job search. Many companies now run credit checks as part of their background verification. A history of loan defaults can be a red flag, potentially jeopardizing a job offer for roles that require financial responsibility.

What NOT to Do: Key Mistakes to Avoid After Missing an EMI

When you’ve missed an EMI, your next actions are crucial. Panicking can lead to poor decisions. Here are the things you should absolutely avoid doing:

1. Don’t Ignore Our Communications: Ignoring reminder calls, SMS, and emails is the biggest mistake. This signals to us that you are not willing to resolve the issue, forcing an escalation. Answering our call is the first step towards finding a solution together.
2. Don’t Deal with Unofficial Third Parties: Be wary of unauthorized agents who claim they can “settle” your loan for a fee. Always handle your loan payments and communications directly through the official Navi app.
3. Don’t Take on More High-Interest Debt: A common panic reaction is to take a new, expensive loan (like from an unverified app or a payday lender) to pay the EMI. This often creates a debt trap, digging you into a deeper financial hole with much higher interest rates.
4. Don’t Make False Promises: If you speak with one of our representatives, be honest about your situation. Promising to pay on a date you know you can’t meet erodes trust and makes it harder for us to help you.
5. Don’t Let Stress Lead to Inaction: It’s natural to feel stressed, but don’t let it paralyze you. Avoiding the problem will only make it bigger and more expensive. Taking one small, positive step, like checking your overdue amount on the app, can break the cycle of inaction.

How to Avoid and Mitigate the Consequences: Your Proactive Toolkit

The best way to deal with a missed EMI is to prevent it from happening in the first place. Here are proactive strategies to manage your loan effectively:

1. Communicate with Your Lender: If you anticipate having trouble paying an upcoming EMI, don’t wait until the due date. Contact Navi’s support team in advance. Early communication shows responsible behaviour and opens a dialogue for potential solutions. You can reach out to customer support through:
   1. the “Help” Section on the Navi App.
   2. You can access: https:/navi.com/contact-us
2. Prioritise Your Payments: When planning your monthly budget, make your loan EMI a top priority. High-interest debts should be cleared before discretionary spending. Setting up an auto-debit or standing instruction ensures the payment is never missed due to an oversight.
3. Make Advance Part-Payments: If you receive a bonus or have extra cash, consider making a part-payment towards your loan principal through the Navi app. This not only reduces your future interest but can also lower your EMI or loan tenure, making repayment easier.
4. Maintain a Contingency Fund: Life is unpredictable. Build an emergency fund that covers at least 3-6 months of your essential living expenses, including your EMIs. This fund can act as a crucial buffer during a job loss or medical emergency, ensuring your loan payments stay on track.
5. EMI Shield: Unexpected medical expenses are a leading cause of missed EMI payments, as they can deplete your savings. Protect yourself from this by choosing EMI Shield during your loan disbursal. In case of a medical emergency, EMI Shield will take care of your EMI payments, so you can focus on recovery without financial worry.

Back on Track: A Step-by-Step Guide to Clearing Your Overdue EMI

If you’ve missed an EMI, the most important thing is to act quickly. Here’s how you can get back on track:

Step 1: Don’t Panic, Act Promptly The moment you realize you’ve missed an EMI, make it a priority to address it. The sooner you act, the lesser the impact.

Step 2: Review Your Finances Take a moment to understand why the payment was missed. Was it a simple oversight or a sign of a larger financial strain? This will help you plan your next steps.

Step 3: Contact Navi’s Customer Support Proactive communication is key. Get in touch with our customer support team to inform them of the situation. We are here to help you understand the overdue amount and the process to clear it.

Step 4: Pay the Outstanding Amount You can easily pay your overdue EMI through the Navi app or website. You can also use other payment platforms to make your Navi loan payment. Ensure you pay the entire overdue amount, including any late fees, to bring your account up to date.

How to Pay Your EMI on the Navi App:

1. Open the Navi App: Tap on the Navi icon on your smartphone to launch the app.
2. Go to the ‘Loan’ Section: On the app’s home screen, navigate to the ‘Loan’ section. This will show you a dashboard of your active loan.
3. View Payment Details: You will see your loan details, including the outstanding EMI amount and any accrued charges. Select “Pay EMI”.
4. Choose Payment Method: Select your preferred payment method. You can pay using UPI, a debit card, or net banking.
5. Complete the Payment: Follow the on-screen instructions to authorize and complete the transaction securely.
6. Get Confirmation: Once the payment is successful, you will receive an instant confirmation on the app and via SMS.

Is Settling the Overdue Loan Amount a Good Choice?

Settling a loan is very different from repaying a loan and should not be confused with each other. In case of a loan settlement, the lending institution closes an individual’s loan account and reports the account as “settled” to the credit bureaus. However, this settled account is not considered a normal closure of the account and reflects badly on the individual’s credit profile. 

A settled account can bring down the credit score significantly, making it difficult for the individual to get loans approved for the next few years. That’s why settling the loan overdue amount may not be the ideal solution. However, you could get help in the form of a cash loan. Scroll down to know how a personal loan could be helpful in repaying the loan overdue. 

How can Personal Loan Help Clear Outstanding Payments?

It is how a personal loan can assist you in paying off past-due bills: 

• Debt Consolidation: In case you are paying multiple EMIs on different personal loan accounts, you can consolidate your debt under one personal loan with lower interest rates. This will help you close other loan accounts while you pay EMIs only for a single personal loan account.
• An easier way to clear outstanding payments: Personal loans are more accessible than ever. All you need to make sure is to meet your lender’s eligibility criteria. Once the loan is transferred into your account, you can clear your outstanding dues conveniently. However, note that you will still be in debt. Hence, gauge your repayment capacity before taking a loan.

Also Read

What is a Cash Credit Loan and How to Apply for it?

How to Get a Personal Loan without Income Proof?

Eligibility Criteria for Availing a Personal Loan to Clear the Overdue Amount

Many people take Instant cash loan in order to clear their loan overdue. If one wishes to do that, he/she needs to fulfil the following criteria first to avail of a personal loan:

• Individuals borrowing the loan should be between the age of 21-60 years
• The borrower applying for the loan should earn at least Rs 25,000 monthly in cities like Delhi and Mumbai and a minimum of Rs 20,000 in other cities of India.
• Applicants should be employed in a private or public sector office. Self-employed employees must have a minimum turnover that the lending institution approves.
• The borrower’s credit score should be more than or equal to 750
• Individuals should show a minimum work experience of 1 year and 6 months experience in the present organisation.

Note that these requirements may vary across different financial institutions. 

Delay in paying the overdue sum increases the amount of interest that must be paid, resulting in a mountain of debt. Delaying payments lower your credit score and increase your chances of having your loan denied in the future. 

Final Word: Your Financial Well-being is Our Priority

At Navi, we are dedicated to helping you achieve your financial goals. A cornerstone of this journey is financial discipline, and timely EMI payments are a crucial part of your commitment.

Paying your EMIs on schedule is the most effective way to build a strong credit profile and ensure your financial journey remains seamless and on track.

We understand that unexpected situations can arise. If you face a genuine hardship and anticipate difficulty with an upcoming EMI, it is essential to contact our customer care team in advance. Proactive communication allows us to review your situation and explore potential solutions to help you prevent a negative impact on your financial standing.

Your commitment to timely payments is your strongest asset. Let’s work together to keep your financial health a top priority

FAQs on Loan Overdue