Many companies are considered to be one of the top financial services brands. It is widely known to provide services to retail and Micro Small and Medium Enterprise lending. It provides a basket of financial services, including personal loans, gold loans, and investment options like fixed deposits.
Interesting right? Well, it is. Getting financial support easily from the most trusted brand is very helpful. Along with the personal loans, this company allows its customers to buy the bike of their dreams. It can be done with the help of an EMI, which comes with its benefits and disadvantages.
So, let us take a look at the two-wheeler loan seizure process and the bike loan EMI default.
It will be disappointing as you are just a step away to get your dream bike. For this, you are required to pay the EMI default charges. So, to get your bike back, you will be paying the extra charges along with the EMI.
You will be liable to pay the extra charges and payment fees, bank charges, overdue interest, etc. As per the loan agreement, if you do not pay the EMI amount timely, then the lender holds the right to seize your asset and auction it. So, eventually, you will be involved to pay more than the EMI amount.
What if your cheque bounces and you are unable to pay your EMI? In this case, Shriram City Union Finance states about the EMI charges in Schedule 2 of the loan agreement. You need to go through the agreement properly. The charges involve 36% per annum on the instalment amount along with the amount in arrears in the form of late payment charges.
For instance, if your EMI amount in a year was INR 50,000, you will likely pay the overdue interest of 18,000 as your final late payment charges.
The other consequences that you might face are in the following ways:
Non-payment of the EMI timely will allow the lenders to report this to the credit bureaus. What's next then? The total penalty needs to be paid along with the collection charges, overdue interest, etc. Your overall CIBIL score will be affected by this. Eventually, you will not be able to apply for loans in the future.
If you are continuously ignoring the lenders' notices, then not only you but your guarantor shall also be liable to pay the EMI default charges. If the guarantor is responsible for your EMI payment, he shall be liable to pay your extra EMI charges.
Ultimately, the CIBIL score of your guarantor will be affected too. So, this will further lead to reducing his loan-taking capability:
Non-payment of the EMI's of your asset can adversely affect your credit score. Your credit score will become low, and this will affect your relationship with future lenders. Your lenders will not accept your loan applications further. Not only this, but they can even charge you a higher rate of interest in the future:
In such times of difficulty, Shriram City shall provide you with a moratorium on repayment. It can help you to overcome the problem of EMI bounce charges.
But what is this moratorium? It is referred to as a "pause" on the repayment obligations. However, you need to get in touch with Shriram City to change the repayment schedule.
With 900+ branches across India and a simple online application procedure, you can get your bike financed by Shriram City. Shriram City Union Finance is there to reduce your late payment charges and ensure a good credit score too! Visit today and explore opportunities.