WHAT HAPPENS WHEN YOU MISS AN SIP INSTALMENT? AN SIP instakment is usually missed when the investor does have sufficient balance in his/her bank account. Many investors think that missing an SIP can lead to a BAD CIBIL SCORE, however that is not the case.
However, the bank charges a penalty when an SIP instalment is missed. This fees is charged for not maintaining sufficient balance for auto debit mandate through Electronic Clearing Service (ECS). The penalty charges vary from Rs 150 to Rs 750 depending on the bank account owned by the investor.
The best thing to do in these situations is to PAUSE the SIP when there is a genuine cash crunch for that particular month. Once the investor has sufficient funds in the bank account, the SIP instalments can be resumed.
The best part: Pausing and resuming an SIP does not involve any cost.
For more such updates, hit the follow button.
