A loan becomes overdue when scheduled EMI payments are not made within the required time. Many borrowers worry about the consequences when payments become delayed.
Banks normally begin with reminder messages or calls requesting repayment of the overdue amount.
Loan agreements often include late payment fees when payments are delayed beyond the due date.
If overdue payments continue for longer durations, lenders may initiate further recovery procedures depending on the circumstances and loan agreement.
Understanding repayment obligations and planning finances carefully helps borrowers avoid further complications.