New Delhi, Oct. 28 -- Missing a loan EMI by even one day can make a borrower's account overdue and potentially attract late-payment charges. It may also create a risk of adverse credit reporting, although a one-day delay does not automatically lead to an immediate drop in the borrower's credit score.

The impact depends on the lender's reporting practices, the duration of the delay and the borrower's repayment history. While a short delay may have a limited impact on the credit score, repeated late payments can affect a borrower's creditworthiness and make future borrowing more difficult.

The Reserve Bank of India (RBI) requires lenders to classify an account as overdue if the amount due is not paid by the end of the day on the due date....