1 / 9It is everyone's dream to have their own house. But often we fulfill this dream by taking a loan from the bank. But sometimes due to some reason it is not possible to repay this loan. Then the problem arises before us. But what happens if the EMI is not paid?2 / 9Home loans are classified as secured loans. In return you have to pledge your property to the bank. But if you are unable to pay the home loan then let's see what are the guidelines of RBI.3 / 9When you default on your home loan for the first time, the lender usually sends an alert through SMS, email, or even calls to remind you about the payment.4 / 9The bank may also apply a late fee or penalty charges for the delay. These penalties are usually 1 per cent to 2 per cent of the overdue amount, which is to be paid in addition to the EMI.5 / 9When you fail to pay the EMI for the second time, your bank will send you a reminder and may ask you to make the payments at the earliest.6 / 9However, if you still fail to pay the outstanding amount for the third consecutive time, the bank or financial institution classifies the loan as a non-performing asset (NPA).7 / 9Following this, the lender initiates legal action against the defaulter under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act of 2002 (SARFAESI).8 / 9The bank soon starts the process to recover the dues and serves legal notice to the borrower asking to settle the dues within 60 days. In a home loan, which is a secured loan, the borrower pledges an asset as collateral against it. If a defaulter doesn't pay the dues within 60 days, then as per the SARFAESI Act, the lender has the right to take possession of the collateral.Here, the bank can possess your pledged asset even without the court's intervention.9 / 9Once 60 days have passed, and the borrower has still not settled the dues, the lender serves a notice to the defaulter stating the value of the pledged asset and its auction date. It must be noted that besides these consequences, defaulting on your home loan EMI also affects your credit score and, in turn, impacts your future borrowing.