mob-head
Get App
close img

Find all the help you need

Scan the QR, get our app, and find help on your fingertips

apple-logo playstore-logo
Download our app
Help Center

Support topics, Contact us, FAQs and more

Explore Personal Banking
Accounts
Deposits
Loans
Wealth & Insure
Payments
Cards
What's special about us
Customer Support
Explore all Credit Cards
Premium Metal
0% Forex & Travel
Lifetime Free
10X Rewards
UPI Cards
Fuel & Utility
Showstopper
Credit Builder
More
Customer Support
Explore NRI Banking
NRI Savings Account
NRI Fixed Deposit
GIFT City
FOREX Solutions
Transfer to NRE
Markets & Beyond
Customer Support
Explore Startup Solutions
Explore Corporate Banking
Corporate Account
Cash Management Services
Supply Chain Finance
Corporate Lending
Treasury
NBFC Financing
Customer Support
BRAVO (Auto Sweep)
Explore Business Banking
MSME Accounts
Trade Services
MSME Loan
MSME Solutions
Debit Card
Offers
Customer Support
Explore GIFT City
About Us
Investors
Careers
IDFC FIRST Academy
ESG

FOLLOW US ON :

Download Now

  • App Store
  • Google Play

Notifications

  • As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.

  • Activate your Credit Card within minutes and enjoy unlimited benefits

    Know More

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

    Apply Now

FinFIRST Blogs

Credit Card Savings Account Personal Loan Home Loan Car Loan Education Loan Two Wheeler Loan NRI Business Banking Fixed Deposit Finance Beyond Banking MyFIRST Mobile Banking Startup Banking Investments Salary Account Current Account
Apply Now

Personal Loan

What is an overdue payment and how does it affect your financial health?

Key Takeaways

  • Key Takeaway ImageOverdue payment is when a person cannot repay by the given due date.
  • Key Takeaway ImageNot paying your dues on time can lead to penalties, higher interest rates, and negatively impact credit scores.
  • Key Takeaway ImageLeveraging digital facilities like automatic payments via innovative offerings like IDFC FIRST Bank’s FIRSTmoney can help avoid overdue payments.
18 Jun 2025 by Team FinFIRST
overdue payment on personal loan
Apply Now

Whether it’s a personal loan EMI, a credit card bill, or a subscription fee, missing a due date can lead to more than just a temporary inconvenience. It can have lasting consequences on your financial health. Here's a closer look at what overdue payments are, why they happen, and how to avoid them.

READ MORE

personal line of credit
Understanding the Line of Credit: A Comprehensive Guide
person using a calculator with a pen in hand
Debt-to-income ratio and personal loans: Some important aspects you must be aware of

What is an overdue payment?
 

An overdue payment refers to any financial obligation, like a loan repayment, credit card bill, or utility charge, that remains unpaid beyond its agreed-upon due date. For instance, if you miss your personal loan EMI, the unpaid amount becomes overdue and may start accruing late fees, additional interest, and could even trigger legal action if ignored for too long.

Why do overdue payments happen?
 

Overdue payments don’t always stem from negligence. Here are some common reasons:

  • Financial setbacks: A sudden job loss, unexpected medical emergency, or other unplanned expense can disrupt your ability to pay.
  • Missed reminders: Managing multiple payment deadlines can lead to oversight, especially without proper reminders.
  • Technical issues: Failed auto-debits, app glitches, or banking delays may cause payment failures.
  • Deliberate delays: In rare cases, borrowers may intentionally delay payments due to disputes or dissatisfaction.

Consequences of overdue payments
 

Even a single missed payment can set off a chain reaction:

1. Late Fees and Penalties
 

Lenders typically impose a late fee if you miss an EMI. Over time, these charges compound, increasing your debt burden.

2. Higher Interest Costs
 

For products like personal loans or credit cards, missed payments may lead to revised (higher) interest rates, making your overall repayment more expensive.

3. Credit Score Impact
 

Overdue payments are reported to credit bureaus and can lower your credit score. This makes it harder to secure loans, get favourable rates, or even qualify for future credit.

4. Potential Legal Action
 

If overdue payments persist, lenders may initiate recovery actions, ranging from collection agency involvement to court proceedings.

How to avoid overdue payments
 

Here are practical steps you can take to stay on top of your repayments:

Set Up Reminders
 

Use mobile apps or calendar alerts to track your due dates.

Automate Your Payments
 

Auto-debit facilities ensure timely payments. With tools like IDFC FIRST Bank’s mobile app, you can schedule payments to avoid defaults entirely.

Monitor Your Dues
 

Use a loan dashboard or financial tracking tool to view all your obligations in one place. The FIRSTmoney dashboard offers a unified view of your loans and repayment dates.

Ask for Help
 

If you anticipate a delay, inform your lender in advance. You may be eligible for an extension or a temporary restructure of your repayment plan.

A smarter way to borrow: FIRSTmoney Smart Personal Loan
 

Looking for more control over your loan repayments? FIRSTmoney by IDFC FIRST Bank offers:

  • Personal loans of up to ₹10 lakh
  • 100% digital application and disbursal process
  • Competitive rates starting from 9.99%
  • Zero foreclosure charges, so you can repay early without penalties
  • Real-time tracking and automation options to help you stay on schedule

Conclusion
 

Overdue payments can damage your credit profile, increase your financial burden, and affect your long-term borrowing power. But with a little planning, timely reminders, and smart financial tools like FIRSTmoney, you can stay in control and build a strong repayment track record.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.

Prev

Important things to consider before you apply for a personal loan
Next

Does Cancelling a Personal Loan Affect Your Credit Score?

Related Products

Related Articles

Download IDFC FIRST Bank App

You might also be interested in:

Savings Account

Savings Account
Personal Loan

Personal Loan
Credit Card

Credit Card
Home Loan

Home Loan
Two Wheeler Loan

Two Wheeler Loan

Contents