Your next EMI doesn't fit your budget: what to do before the due date

Short answer: Act before the due date, not after. List what you owe and what you can really pay after basic needs. Then contact your lender through its official channel, explain what has happened, and ask what options exist. Don’t take a new expensive loan to pay an old one without a plan. Lenders don’t have to agree to changes, but asking early usually leaves you more choices. You also have rights: recovery agents must follow RBI rules, and you can complain if they don’t.

You’re not alone, and talking about it helps

A drop in income, an illness, a family emergency or too many EMIs (monthly loan payments) at once can happen to anyone. Shame often makes people go quiet and wait. But the problems grow fastest in that silence. Late fees and penal charges (fines for paying late) add up, the calls start, and marks appear on your credit report.

Step 1: Gather the facts (30 minutes)

For each loan, card or BNPL (“buy now, pay later”) plan, write down:

• The lender’s legal name (not just the app name)
• Amount due, due date, and how many payments are left
• Is it secured, that is, backed by gold, a vehicle or a house?
• Any payment already late, and by how many days?
• Where you keep the KFS (Key Facts Statement, the loan’s summary sheet), the loan agreement and statements

Step 2: Protect the basics first

Work out what your household needs for food, rent, electricity, medicines and travel to work. That money comes first. What’s left is what you can honestly offer lenders. Don’t count on money you hope to receive.

If one loan is secured, such as a gold loan or vehicle loan, missing it can mean losing the gold or the vehicle. Think about that when you decide what to pay first.

Step 3: Contact the lender (before the due date)

Use the official phone number, email or app, as listed in your KFS or on the lender’s website. Never use a number from an unknown caller. Say:

“My loan number is ___. My income has fallen because . I can pay ₹ a month at the moment. What options do you have, such as a changed due date, a short-term arrangement or a restructured schedule? Please send me any offer in writing.”

Ask about:

• Moving the due date closer to your payday
• A lower payment for a short time
• A longer tenure (more months to repay) to lower the EMI. Ask for the new total cost.
• For a card, turning the balance into an EMI

Before you agree to anything, ask:

• What’s the new total amount I’ll repay?
• Are there fees?
• How will it be reported to credit bureaus (the companies that keep your credit record)?
• Can I have it in writing?

Write down the date, the time, the person’s name and any reference number.

Step 4: Avoid these traps

• New high-cost loans to pay existing EMIs, especially from instant loan apps. This often makes the next month even harder.
• “Debt settlement” agents who ask for fees upfront and promise to “clear your CIBIL” (your credit record). Nobody can legally erase accurate records.
• Settling for less without understanding what it means. Future lenders may see a loan marked “settled” as a bad sign. (See Settled, closed and written off.)
• Ignoring calls and letters completely. Reply in writing instead.

Your rights with recovery agents

Under RBI rules, lenders and their recovery agents must not:

• Call you before 8 am or after 7 pm (for microfinance, meaning small loans to low-income households, RBI treats calls before 9 am or after 6 pm as harsh)
• Threaten, abuse or insult you or your family, or contact friends and relatives to shame you
• Scare you or use force

Lenders must tell you the names of the recovery agents working for them, and agents should carry ID. New RBI rules, issued on 6 August 2026, start on 1 January 2027. The lender must tell you which recovery agency is coming at least one day before its first visit. Recovery calls must be recorded and kept for six months, and you must be told the call is recorded. Agents must hold a certificate from IIBF (Indian Institute of Banking and Finance).

Being harassed? Note the date, time, number and what was said. Then complain to the lender’s grievance officer, the person who handles complaints (you’ll find their contact details in your KFS). If there are threats of violence, contact the police.

Step 5: If the lender doesn’t resolve your complaint

1. Complain in writing to the lender first and keep the reference number.
2. No reply within 30 days, or unhappy with the reply? You can complain to the RBI Ombudsman (the RBI’s free complaint service) at https://cms.rbi.org.in or by calling 14448.
3. Under the RB-IOS 2026 scheme (from 1 July 2026), you must file within 90 days of the lender’s reply or of the 30-day period ending. How to complain about a bank, NBFC or loan app walks you through it step by step.

The Ombudsman can look into how the lender treated you. It can’t cancel a valid debt.

What to check today

1. Make the list in Step 1, even if it’s on paper.
2. Write down the date of your next due payment and the lender’s official contact.
3. Prepare the sentence in Step 3 with your own numbers.

Tools that help

→ Debt map: see all payments and due dates on one screen, and how much is left after basic needs. If even the minimums don’t fit, it shows a “talk to lenders” plan instead of a payoff race.

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Sources and review

• RBI — Responsible Business Conduct Directions, 2025 (fair practices, recovery agents): https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13140
• RBI — new recovery-agent rules from 1 January 2027 (press release, 6 Aug 2026): https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=63305
• RBI — FAQ on Microfinance Loans (Q10, harsh practices): https://www.rbi.org.in/commonman/Upload/English/FAQs/PDFs/RFML30012025.pdf
• RBI — Integrated Ombudsman Scheme, 2026 (press release): https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=62052
• RBI Complaint Management System: https://cms.rbi.org.in