If you have taken a home loan, car loan or personal loan, it is important to pay the EMI on time every month. Many times, due to lack of money in the bank account or some technical problem, the EMI is not deposited on the scheduled date. In such a situation, the question arises, can the credit score deteriorate if there is only one day delay in paying the EMI?

According to Reserve Bank of India (RBI) regulations, if the loan installment is not deposited by the end of the due date, the account can be considered overdue. However, it is not necessary that a one-day delay will immediately and definitely cause a credit score drop. Its effect depends on the bank’s reporting, payment delay and your past record.

Will there be a penalty for one day delay?

Even if there is a one-day delay in depositing the EMI, the bank or finance company may levy a late payment charge. These charges depend on the terms and conditions of your loan. Therefore, it should not be assumed that the bank will ignore a delay of one or two days. A Mint report quoted money markets as claiming that the bank may give some time in some cases, but that does not mean that the penalty for delay will also be waived.

Under RBI regulations, lending institutions have to specify the details of penalty related charges in advance. These charges should be reasonable. Banks cannot charge more by adding interest on this. However, the general interest charged on the loan is different.

How many days delay can affect credit score?

Experts say that a single day’s delay does not necessarily lead to a big change in credit score, but if you frequently pay EMIs late, it can affect your credit history. Due to which it may be difficult to take loan in future. As per RBI regulations, from January 1, 2025, lending institutions will have to update credit-related information with credit bureaus every 15 days. With this, payment records can be updated faster than before. If the EMI remains outstanding for more than 30 days, the credit profile may suffer further.