I am 35 years married and residing in Davangere. I had availed a car loan and bought a car of INR 8 Lakhs a couple of years ago. Recently, there has been a large number of layoffs in my Company and I am worried about my job.I may not be able to repay car loan EMI's for a while if I lose my job. What will happen if I don’t pay my car loan temporarily? Can I do something about it?
These are really tough times and mostly a temporary setback.If you are unable to keep up your car loan commitment, the first thing you need to do is to talk to the bank and request it to permit you to hold off EMI payments until you get a job. If the bank does not agree, you could think of liquidating some of your existing investments/assets to repay the loan. A credit counseling centre offers free/paid services on ways of tackling debts. Banks also offer credit counseling services. Credit counseling centres explore alternative means of debt management, to help you get back on your feet and secure a debt- free future. You must not default on your car loan: 1. A loan default could lead to your car being impounded/seized. 2. Your credit score will come down making it difficult for you to avail loans in the future.