New Delhi, Oct. 26 -- Losing a job, facing a medical emergency or experiencing a sudden reduction in income can make it difficult to keep up with home loan EMIs. For borrowers with outstanding loans running into several lakhs, even a few missed payments can create financial pressure and affect their credit history.

However, borrowers struggling with repayments may have options other than defaulting on their loans. One possibility is home loan restructuring, under which a lender modifies the repayment terms to make instalments more manageable. While this can provide immediate relief, it may also increase the total interest payable and affect the borrower's credit profile.

Home loan restructuring involves modifying the original terms of a...