What happens if i miss a provident payment

Doorstep lending, often referred to as home loans or home credit, is where an agent, including those working for Provident, come to your house to offer you a loan. People who need cash, and are already facing financial hardship, might find doorstep or home credit loans, their loan of choice.

This is because doorstep lenders, such as Provident, will often lend to people with a poor credit history, who have been refused credit by mainstream lenders. An agent will come to your door and provide you with information on how to obtain a loan. If you come to an agreement, all the required paperwork will be completed there and then.

The agent, with whom you complete the paperwork with on their first visit, will usually be the same person tasked with collecting future repayments and responding to any queries that you may have.

The representative from the loan company should request proof of identification, your address as well as details of your income. How much is subsequently given to you normally depends on your income and how much you can afford to pay back each week. However, companies such as Provident have been criticised for not conducting suitable affordability checks. This APR may seem attractive, compared to typical payday loans, but because doorstep loans are paid back over a longer period of time, the total the amount you pay can be similar.

Taking out multiple loans is often a sign that someone is struggling with their debts and loan providers are under an obligation not to take advantage of this. Even if you always paid your loan repayments on time, it would still be classed as unaffordable if you had to borrow more money to do so. This might be because you had to keep refinancing or taking out top up loans to keep up with the repayments. In these cases, the lender should have realised that your life was being made more difficult when you kept increasing your borrowing.

A responsible lender should have suggested you pay one loan over a longer period, with no additional interest, but all too often people are just offered bigger or more loans. Make Loan Payment. Close Make Loan Payment Here. Set up a recurring payment and have your payments automatically deducted from your Provident Bank Checking or an account at another financial institution. If You Need Assistance.

Payment Information. General Information. Transfer of Service. It ensures that your loan application is sanctioned, and you are offered the best interest rates.

Missing even a single EMI payment brings down your credit score by 50 to 70 points. Besides your credit score, missing an EMI payment also leads to a black mark in your credit report. Borrowers consider your credit report to determine your creditworthiness. When they notice this black mark, they are not likely to approve your loan application.

And, even if your loan request is sanctioned, you will be charged higher interest rates. Several lenders levy late fees penalties when a borrower misses paying an EMI on time. This is the worst-case scenario and most stressful of all these consequences. Banks and finance companies sometimes send recovery agents to visit you at your residence or workplace. The job of these recovery agents is to collect the due amount from you. Generally, most lenders opt for recovery agents only when the loan is classified as an NPA.

Usually, lenders send a day notice to borrowers before they consider the loan as an NPA. A visit from a recovery agent is not only stressful but also embarrassing. As you can see, even missing a single EMI can lead to negative consequences. Hence, it would help if you evaluated whether you will be able to pay the EMIs on time before you take a loan.

Here are a few ways to help you plan your finances better and pay your EMIs on time. If you suspect that you won't be able to pay the upcoming EMI on time, you need to take action before its too late. Approach your lender before the due date and explain your financial circumstance. Check whether the lender will be able to pause EMIs temporarily.

Else, you can request the lender to reduce the EMI, until your financial situation recovers. Most lenders honour these requests by borrowers, especially when they have not defaulted before. You can approach your lender for help if you suffer from a loss of income due to layoffs or a job loss.

Lenders often oblige a pause in EMI requests, especially when the borrower is suffering from a loss of income. You can continue repaying the loan once you get back on your feet. Financial advisors recommend that you always maintain an emergency fund to dip into during a financial crisis. The emergency fund must hold around six months of your salary. This way, you can use this fund to pay for your household expenses and EMIs if something unexpected happened to your income flow.