Unable to pay EMI: If you are not able to pay the EMI of your personal loan, then adopt these smart methods 

Unable to pay EMI: If you have suddenly lost your job, your business has shut down or you are unable to pay EMI due to any other reason, then there is no need to panic. First of all, contact your bank and tell them about your financial situation. 

The bank can give you some options to help you, such as reducing the EMI amount for some time, restructuring the loan, giving a few months' grace (relaxation). By taking a little wisdom and the right steps, you can easily get out of this difficult time.

It is important to remember that if you take another loan to repay one loan, you can get caught in a debt trap. Therefore, you should avoid doing this. Now the question is, what to do if you are not able to repay the loan installment (EMI)? Let's know:

Talk to the bank first

If for some reason you are not able to pay the EMI of the loan, do not panic. First of all, contact your bank or NBFC (from where you have taken the loan) directly. 

You can send an email or visit the bank branch and meet the loan department officer. Tell them clearly about your current situation and ask for some relief (discount) in EMI for some time. 

For example, you can say that you will not be able to pay EMI for the next 3 months. The bank will check your situation and then decide whether you can be given relief or not. The bank may give you less time than the period you have told, but it can definitely help you.

If you took a loan of Rs 5 lakh for 5 years and paid EMI on time for 3 years, but are now in financial trouble, then the bank can extend your loan period. This will reduce the EMI every month a little, which can give you relief.

Get Balance Transfer done

Many banks provide you the facility to transfer your loan from one bank to another. This is called balance transfer. In this, the new bank gives you a new loan, with which you can repay the old loan. Apart from this, you can also get some extra money, which can help in improving your financial condition. 

Some banks give loans at low interest rates, which can be beneficial for you. Balance transfer can also be done on loan and credit card dues. But keep in mind that some banks do not include loans taken from NBFC (non-banking financial institutions) in balance transfer.

Get loan settlement done (One-Time Settlement)

If you are unable to pay the EMI even after repeatedly talking to the bank, then the bank can give you the option of One Time Settlement (OTS). 

In this, the bank can take 10% to 50% of the amount from you at once and waive off the rest of the loan amount. Usually, banks give 1 week's time to pay the settlement amount.