What Happens If You Miss a SIP Payment? The Complete Answer

Quick Answer: Missing one or two SIP payments does not cancel your SIP or harm your credit score. Most fund houses simply skip the instalment for that month. Your SIP continues automatically the following month. However, your bank may charge a ₹200–₹500 mandate dishonour fee. Missing 3 consecutive instalments may result in automatic SIP cancellation with some fund houses.

Here's a situation that happens more than people admit: salary is delayed, the rent hits unexpectedly, and suddenly the auto-debit for your ₹5,000 SIP bounces.

If this has happened to you, you've probably worried: "Does this cancel my SIP? Will I be penalised? Is my fund gone?"

Let me clear all of this up.

What Actually Happens When You Miss a SIP Payment

Step 1: Auto-Debit Fails

Your bank attempts to debit the SIP amount on the scheduled date. If your account balance is insufficient, the debit fails.

Step 2: Bank Charges a Dishonour Fee

Your bank will charge a **mandate dishonour fee*

• — typically ₹200–₹500 depending on your bank. This is similar to a cheque bounce charge. It's a one-time fee for that specific failed debit.

Step 3: No Units Are Allotted for That Month

Since the payment wasn't received, no mutual fund units are allotted to you for that specific month. It's as if that month's SIP simply didn't happen — your existing units remain untouched.

Step 4: Your SIP Continues Next Month

In most cases, your SIP is not cancelled. The following month's auto-debit attempt happens as scheduled.

When Does a Missed SIP Actually Cause a Problem?

Most fund houses will **automatically cancel your SIP if you miss 3 consecutive instalments.*

• After that, you'd need to create a new SIP mandate.

Missing 1–2 payments: no problem, SIP continues. Missing 3+ consecutive payments: SIP may be cancelled; you'll need to restart.

Does Missing a SIP Affect Your Credit Score?

**No.*

• SIP payments are not loan EMIs. A missed SIP payment is not reported to CIBIL or any credit bureau. It has zero impact on your credit score.

How Much Does a Missed Payment Cost You (in Returns)?

Let's calculate the actual impact on a ₹5,000 SIP:

If you miss 1 month of a 10-year ₹5,000 SIP in year 5 (when the NAV is relatively high):

• You lose approximately ₹5,000 × growth factor for remaining 5 years
• At 12% return: ₹5,000 grows to roughly ₹8,811 over 5 years
• One missed payment = ~₹3,811 in lost compounding return

It's not catastrophic. But if you miss 6 months over a 10-year period, that's roughly ₹23,000 in lost compounding. Avoidable.

How to Never Miss a SIP Payment

1. Keep a buffer:*

• Maintain at least 2 months of SIP amount in your savings account as a permanent buffer. This is separate from your emergency fund.

2. Set SIP date after salary credit:*

• If your salary hits on the 1st, set SIP for the 5th or 7th.

3. Use bank autopay, not manual transfer:*

• NACH mandate-based auto-debit is more reliable than manual UPI transfers.

4. SMS/email alerts:*

• Most banks send an alert 2–3 days before auto-debit. Enable them.

What to Do If Your SIP Gets Cancelled After 3 Missed Payments

1. Log into your AMC's app/website (Zerodha Coin, Groww, MF Central, or direct fund house app) 2. Create a new SIP mandate for the same fund (same amount or increased) 3. Set up NACH mandate again — takes 3–5 working days to activate

It's a 10-minute process. Don't let it stay cancelled for months while you "plan to restart."

Key Takeaways

• 1–2 missed SIP payments: No cancellation, no credit score impact. Just a bank dishonour fee of ₹200–₹500.
• 3+ consecutive misses: SIP may auto-cancel. Restart it as soon as possible.
• One missed month costs ~₹3,800–₹4,000 in compounding return on a ₹5,000 SIP at 12%.
• Fix: Keep a 2-month SIP buffer in your account. Set debit date 5–7 days after salary date.