Search in Indianmoney's WealthPedia

Home Articles How to Tackle Home Loan EMIs if You Lose Your Job?

How to Tackle Home Loan EMIs if You Lose Your Job? Research Team | Posted On Tuesday, September 03,2019, 02:36 PM

5.0 / 5 based on 1 User Reviews

How to Tackle Home Loan EMIs if You Lose Your Job?



India is facing a slowdown. The official figures released on August 30th show that India’s GDP (Gross Domestic Product) grew at 5% in April-June 2019. Yes, India’s GDP has hit a 6 year low. The GDP was 8% for the same quarter last year. (2018-19).

Now, let’s take a look at GVA (Gross Value Added) which is a better indicator of economic activity. This is basically GDP minus taxes. GVA grew just 4.9% in April-June 2019 compared to 7.7% in the same period last year.

Now, the Global economy is on the brink of a recession as the US-China trade war continues. The rupee has tumbled against the dollar to 72.2 rupees vs 1 Dollar. Gold crossed the Rs 40,000 mark as recession fears rise.

The auto sector is facing a severe crisis. It’s the worst in 20 years. Data shows that the auto industry sector may have lost more than 3 Lakh jobs in recent times. Maruti Suzuki July 2019 sales fell 33% compared to the same month last year. Toyota sales fell 24% in August 2019 compared to the same month last year. Textile industry is going through bad times and the NBFC crisis continues to hurt. In all this comes the big question. How to tackle home loan EMIs if you lose your job?

Want to know more on Home Loans? We at will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

See Also: Important Facts On Home Loans

How to Tackle Home Loan EMIs if You Lose Your Job?​

1. Get home Loan Restructured

What if you have lost your job and defaulted on 2-3 home loan EMIs? Will the bank initiate foreclosure and default proceedings? This is a fear many people have.

Now, it’s not in the best interest of the bank to foreclose the loan. Banks want the money back rather than go for legal proceedings.  So, they will always be open for negotiation. The bank will not repossess your house, but follow a wait and watch approach before opting for legal action.

Now, there’s another problem. You may get a new job but not with the same salary. This is why you must get the home loan restructured. Let’s say you are paying Rs 10,000 home loan EMIs for a tenure of 20 years. You can get the home loan restructured where you pay home loan EMIs of Rs 6,000 for 30 years. Use IndianMoney Home Loan Calculator to calculate home loan EMIs.

Yes, restructuring of home loan may cost more in terms of money repaid.  (The total interest outgo would be high). But, you get breathing space to repay the home loan when you don’t have a job.

See Also: How to Select the Best Home Loan?

2. Ask for Deferral of Payments

You could ask for deferral of payments if you have lost the job. The bank may grant you relief, considering you have been regular with repayments and there’s a genuine problem.

You could use the money got as severance pay to prepay part of the home loan. This would lower the home loan EMIs. Don’t default on the home loan. It will ruin your credit score. Get your Free credit score Report at

3. Ask for an EMI Holiday

If you are regular with home loan repayments an EMI holiday comes to your rescue. This EMI holiday is not guaranteed and is at the sole discretion of the bank. (It’s worth a try). EMI holiday must be used only in a genuine emergency.

See Also: Ready For A Home Loan

You May Also Watch

Iframe Content

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Have a complaint against any company?'s complaint portal can help you resolve the issue. Just visit and lodge your complaint. If you want to post a review on any company you can post it on review and complaint portal

Be Wise, Get Rich.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
Get It now!

This is to inform that Suvision Holdings Pvt Ltd ("") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.