Missed EMI & Late Payment FAQ

Missing an EMI typically results in late payment charges, penal interest on the overdue amount, and a negative impact on your credit score. The lender will also contact you to recover the dues.

Acting quickly to clear the dues reduces the impact. The longer the delay, the more severe the consequences become — both financially (additional charges) and in terms of your credit history.

Yes — even a single missed EMI is typically reported to credit bureaus and can lower your credit score.

Credit bureaus like CIBIL track repayment behavior monthly. Missed payments are flagged in your credit report and stay there for several years, depending on bureau policies. The impact is more severe for repeated misses, longer delays, or higher loan amounts. Maintaining a clean repayment history is one of the most important factors for your credit score.

Late payment fees and penal interest, if applicable, are detailed in your Schedule of Charges and the Key Fact Statement provided at loan sanction.

The exact amount depends on your specific loan terms. Contact customer support for the charges applicable to your loan.

Some lenders offer a short grace period after the due date during which you can clear the dues without severe penalties.

Whether a grace period applies to your loan and its exact duration is defined in your loan agreement. Don't rely on grace periods as a buffer — paying on time is always the safer approach.

As per RBI guidelines, accounts with overdue payments are classified into Special Mention Account (SMA) stages based on how long the payment has been overdue, and may be classified as Non-Performing Assets (NPA) if the overdue continues beyond a defined period.

These classifications are part of standard RBI prudential norms followed by all banks and NBFCs in India. The classification affects how lenders treat the account and may also affect future borrowing eligibility from any lender.

Lenders typically follow a graduated recovery process — starting with reminder messages and calls, then engaging recovery agents, and eventually legal action if needed.

As per RBI's Code of Fair Practices, lenders must follow fair recovery practices, including:

- Not harassing or threatening borrowers

- Calling only at reasonable hours

- Treating borrower information confidentially

- Allowing dignified communication

If you face harassment or unfair practices, you can complain to the lender, the RBI Ombudsman, or RBI's Sachet portal (sachet.rbi.org.in).

Pay the missed EMI as soon as possible to limit late fees and credit score damage. If you anticipate further difficulty, contact the lender to discuss options.

Steps to take:

1. Check your loan account in the app for the exact overdue amount and current late fees.

2. Pay the dues through any supported method.

3. If you're facing genuine financial difficulty, contact True Balance customer support to ask about restructuring, postponement, or settlement options.

4. Communication with the lender always helps — silence makes the situation worse.

Genuine missed payments cannot be removed from credit bureau records — they're factual reporting. However, errors can be disputed and corrected.

If you believe a missed payment was incorrectly reported (e.g., you actually paid on time, or the amount is wrong), you can raise a dispute with the credit bureau (CIBIL, etc.) and provide proof. The bureau is required to investigate and correct any verified errors within a defined period. For genuine missed payments, the only option is to keep paying on time going forward — the negative impact reduces over time.