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What is a bounce charge
A bounce charge is a fee your bank or lender applies when a scheduled payment, such as an EMI auto-debit or a cheque, fails to go through. It is charged to cover the cost and inconvenience of a failed payment attempt, separate from any interest or penalty on your loan. If you have just noticed this charge on your statement, it usually means one specific payment attempt did not succeed, rather than an ongoing issue with your loan account. Understanding why it happened is the first step to resolving it and preventing it from recurring.
Why does a bounce charge happen
A bounce charge can happen for a few common reasons:
- Insufficient balance in your account on the scheduled payment date
- A technical issue with your bank's payment processing system
- An expired, cancelled, or inactive NACH or eNACH mandate
- A mismatch in account details, such as an incorrect account number linked to your mandate
- Multiple auto-debits scheduled on the same day, leaving insufficient funds for all of them
- A cheque that was dishonoured due to a signature mismatch or other discrepancy
Checking your bank statement around the date of the failed payment can usually help you identify which of these applied in your case.
How much is a typical bounce charge
The exact bounce charge amount varies from lender to lender and is usually mentioned in your loan agreement or Key Fact Statement (KFS). It is generally a fixed fee, separate from any interest or penalty charge that may also apply if the missed payment leads to a delay in your EMI. Since there is no single standard amount set by RBI for this specific fee, it is best to check your own loan agreement or statement for the exact figure applicable to your loan.
Bounce charge vs penalty charge: What is the difference
These two charges are related but not the same:
| Aspect | Bounce charge | Penalty charge |
|---|---|---|
| When applied | When a payment attempt fails to go through | When a payment is late or in default |
| Cause | Insufficient funds, technical issue, or mandate problem | Missed due date or non-payment |
| Can both apply together | Yes, if a bounced payment also results in a late EMI | Yes, alongside a bounce charge for the same missed payment |
| Nature | Fixed fee for the failed attempt | Regulated under RBI's penal charge guidelines, fixed and not compounded |
What happens after you incur a bounce charge
- Your EMI for that cycle is marked as unpaid or delayed, in addition to the bounce charge itself.
- Your lender will usually attempt the payment again or ask you to make it manually.
- The bounce charge and any pending EMI need to be cleared, often together.
- If the missed payment is not resolved quickly, it may also be reported to credit bureaus, affecting your credit score.
- Continued or repeated bounces can lead to further follow-up from your lender, including reminders or collection calls.
How to avoid this happening again
- Keep a buffer amount in your account a day or two before your due date
- Check whether your NACH or eNACH mandate is still active and linked to the correct account
- Avoid scheduling other large payments on the same date as your EMI
- Set a personal reminder ahead of your due date, in addition to any bank alerts
Making these small checks part of your monthly routine significantly reduces the chances of another bounce charge.
Loan support made easy - Read on
Frequently Asked Questions
Bounce Charges Payment
EMI Details & Account Information
Charges & Payment Issues
How to pay overdue EMI?
To pay an overdue EMI with Bajaj Finance, you can use the following methods:
- Online Payment: Log in to your Bajaj Finance My Account portal, navigate to the 'EMI Payment' section, select the overdue EMI, and make the payment using your preferred method.
- Mobile App: Open the Bajaj Finance app, go to the 'Payments' section, select the overdue EMI, and complete the payment.
- Bank Transfer: You can also pay via NEFT/RTGS from your bank account to Bajaj Finance’s account.
How long does it take for a bounce charge payment to be reflected?
Once you clear the bounce charge, it usually reflects in your loan account within a few hours to 48 hours, depending on the payment method used. You can confirm this by checking your updated loan statement on the portal or app.
Can I pay bounce charges online?
Yes. Sign in to your lender's customer portal or app, select the relevant loan account, and pay the outstanding bounce charge along with any pending EMI using net banking, UPI, or a debit card.
How to check EMI balance?
You can check your EMI balance through:
- My Account Portal: Log in to your Bajaj Finance My Account portal and navigate to the 'Loan Summary' section to view your EMI balance.
- Mobile App: Open the Bajaj Finance app, go to the 'Loan Details' section, and view your remaining EMI balance.
- Customer Service: Contact Bajaj Finance customer service for assistance with your EMI balance.
How can I check my EMI card details?
To check your EMI card details:
- My Account Portal: Log in to your Bajaj Finance My Account portal and navigate to the 'EMI Card' section to view your card details.
- Mobile App: Open the Bajaj Finance app, go to the 'EMI Card' section, and view your card information.
- Customer Service: Contact Bajaj Finance customer service for assistance with your EMI card details..
How can I get an EMI loan statement?
To get an EMI loan statement:
- My Account Portal: Log in to your Bajaj Finance My Account portal, navigate to the 'Loan Statement' section, and download your EMI loan statement.
- Mobile App: Open the Bajaj Finance app, go to the 'Loan Statement' section, and download your statement.
- Customer Service: Contact Bajaj Finance customer service and request your EMI loan statement.
What are bounce charges on a loan EMI?
A bounce charge is a fixed fee applied when your scheduled EMI payment, such as a NACH auto-debit or cheque, fails to go through, usually due to insufficient balance, a technical issue, or a mandate problem.
Can bounce charges be waived?
Any waiver, if applicable, is at your lender's discretion and is not guaranteed. There is no standard or automatic waiver process. For specifics, it is best to check directly with your lender's customer support.
