What happens if I miss a loan repayment?

Missing a loan repayment can have several consequences, and it is essential to understand these potential outcomes to manage your financial obligations effectively. First and foremost, Esanda typically considers a missed payment as a serious issue, and it may result in late fees being added to your outstanding balance. These fees can increase the total cost of the loan and complicate your repayment schedule further. Additionally, your credit score may be negatively impacted if you miss a payment. Credit bureaus often report late payments after a certain grace period, which can diminish your creditworthiness and influence your ability to secure future loans or credit products. A lower credit score may lead to higher interest rates or even denial of credit applications. Esanda may also initiate communications with borrowers who have missed payments. This could include reminders through letters, phone calls, or emails to prompt repayment. It is important to address these notices promptly, as open communication can sometimes lead to options for restructuring the loan or setting up a new repayment plan. If you find yourself in a position where you might miss a payment, it is advisable to review your financial situation carefully. Most financial institutions, including Esanda, usually provide options for borrowers experiencing difficulties. You can check on the Esanda website for additional information regarding their policies on missed payments and any potential assistance programs they may offer.