How to Track Personal Loan Application Status Online?
Personal Loans are the best funding options for people who nee . . .
Apply for Instant Loan
Nowadays, lending institutions, including Hero FinCorp, provide different types of loans, like Two-wheeler Loans, Loans Against Property, Personal Loans, etc., to salaried and self-employed individuals. Instant Personal Loans come as a boon to handle financial emergencies. However, once you borrow a loan and cover the expense, you must repay it to the lender in instalments along with the interest rate.
Although loan providers offer flexible repayment terms to keep EMIs manageable, you may fail to repay the EMIs on time due to unforeseen circumstances like accident, medical emergency, loss of job, divorce, or financial crunch. The amount you fail to repay is called an overdue payment. Let’s dive into the amount of overdue meaning, causes, consequences, and recovery.
An amount that is past due for payment according to the lending institution’s repayment plan is called an overdue payment. Simply put, the overdue payment meaning indicates the sum due to your lender.
An overdue amount typically appears when a payment is past due or the grace period is over. As a borrower, you have delayed payment if you do not fulfil your debt obligation. Additionally, an overdue is detrimental to your credit rating, preventing you from receiving favourable credit approvals in the future.
A payment overdue may happen due to any of the following reasons:
Cash Flow Issues: Issues in the cash flow are one of the most common reasons for an overdue payment. It simply means that the actual cash available with you to repay the EMIs is insufficient due to delayed salary, loss of job, divorce, medical emergency, etc.
Human Error: Overdue due to this reason may happen if you do not stay vigilant in timely EMI payments before the due date. It often happens when you do not opt for automatic EMI deductions from your bank account or do not maintain sufficient balance.
Also Read: How To Clear Overdue Payments with a Personal Loan?
Now that you understand the overdue amount meaning, here are its consequences:
Also Read: Loan Overdue - How to Clear You Overdue Payments
Here is a strategic approach to recovering overdue payments:
Evaluate Your Finances: Assess your present financial situation to calculate how much you can afford to pay immediately towards the overdue payment.
Contact the Lender: Approach your lender to describe your financial condition. Based on your current situation, the lender may offer you a temporary relief or an easier repayment solution to support you on your way back to track. Moreover, the lender may also provide you with a payment restructuring or an extension to make prompt repayments. You may also consider debt consolidation with instant Personal Loans to clear your dues immediately. Loan settlement is the last resort, where you pay a portion of the due amount to the lender.
Create a Repayment Plan: Discuss with your loan provider to devise a repayment plan suitable to your financial capacity. Try your best to stick to this repayment plan diligently.
Also Read: DPD In Your CIBIL Report: Full Form, Meaning & Calculation
Parameter | Outstanding Payments | Overdue Payments |
Meaning | Any payment that is pending | A payment that is past its due date |
Status | Not yet settled | Exceed the due date |
Timeframe | Can include both past and current payments | Specifically includes past dues |
Consequences | No immediate consequences | Interest, penalties, and legal action |
Resolution | Pay it before the due date | Requires immediate action or payment |
A Personal Loan can help you clear an overdue payment with debt consolidation. If you have multiple overdue payments, you can consolidate them with a Personal Loan and repay its EMIs more conveniently, usually at a lower interest rate. Here is how a Hero FinCorp Personal Loan helps:
Also Read: DPD In Your CIBIL Report: Full Form, Meaning & Calculation
Now that you know the overdue payment meaning, try to make your payments before the due date to avoid its consequences. Apart from affecting your reputation and credibility, it also attracts additional charges and legal action. To clear overdue payments, approach Hero FinCorp to borrow a debt consolidation loan at attractive interest rates and quick loan procedures.
Also Read: What to Do in Case You Can't Pay Your Emi or Loan Amount Due
1. How can I pay overdue EMI?
Borrowing a Personal Loan is the best way to pay your overdue EMIs.
2. What is overdue money?
Overdue money is the amount you were supposed to pay by the due date but have yet to pay.
3. What is overdue payment and outstanding payment?
Outstanding payment is an amount you are supposed to pay by a due date, while overdue payment is the amount you did not pay by its due date.
4. What is overdue in loan?
Missed EMIs lead to overdue in loan. Every loan has a fixed repayment schedule. It has a due date before which you must pay the EMI. If you cross that date without paying the EMI, it causes an overdue in loan.
5. How can I postpone my EMI for three months?
Approach the lender to request a pause in the repayment schedule or request a loan restructuring according to your financial situation.
6. What is EMI overdue meaning?
EMI overdue meaning refers to missing the payment deadline for installment loans, resulting in penalties and impacting credit scores. It signifies overdue payments on EMIs.
7. What is overdue meaning in banking?
Overdue meaning in banking refers to payments or loans that are past their due date, leading to penalties or adverse effects on credit scores.
The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.
Subscribe to our newsletter and get exclusive deals you wont find anywhere else straight to your inbox!