How many EMI defaults lead to a loan being classified as NPA?

Answer

A:

Typically, when you miss three consecutive EMIs (equivalent to 90 days of payment default), your loan is classified as a Non-Performing Asset (NPA) by the bank.

Here’s why:
Banks usually treat a loan as “in default” if the borrower has missed payments for more than 90 days. So, if you skip three monthly payments in a row, the bank sees that as a sign you’re not able to repay—and the loan moves into NPA status.

Why does this matter?

• Once a loan becomes an NPA, the bank has to set aside money to cover the risk, which can make them more aggressive in recovering the debt.

• It also has a direct impact on your credit score, making it much harder (and more expensive) to borrow money in the future.

If you’re worried about your loan slipping into NPA status, it’s a good idea to talk to your bank—or better yet, to experts like Legals365 or Advocate B K Singh. They can help you understand your rights, explore restructuring or repayment options, and guide you through the process to protect your financial future.

Let me know if you’d like me to explain how to avoid having your loan turn into an NPA!

Learn more and get the expert support you deserve:
Visit: www.legals365.com
Call: +91 9625961599

Questions? Advocate B.K. Singh and the team are here to support you!

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