What happens if a borrower does not pay his/her personal loan EMI?

If a borrower doesn’t pay or defaults on his/her EMI payment, then the lender will penalise him/her with a late payment charge or a bounce charge as per the rates mentioned in the loan document.

This will impact you negatively as the charges for late payment are usually very high, plus it will impact your credit score.

Thus, it is important that you make your payments in time and regularly.