What to do if EMI is debited twice for a loan against property?

A Loan Against Property (LAP) is a popular financing option where you can pledge your residential or commercial property to secure a loan. This type of loan provides borrowers with access to substantial funds while keeping ownership of their property. However, like any loan, repaying it involves careful planning, especially with regard to Equated Monthly Instalments (EMIs).

EMI payments for a LAP consist of both principal and interest components, allowing you to repay the loan in fixed monthly amounts over a set tenure. The amount of your EMI depends on factors like the loan amount, interest rate, and tenure. Making timely EMI payments is crucial to avoid penalties, maintain your credit score, and prevent foreclosure of your property. Understanding how your EMI is calculated and how to manage it efficiently can significantly ease the burden of repayment while maximising your financial flexibility.

Understanding double EMI deductions for loans against property

Double EMI deductions in the context of loans against property can be a challenging scenario for borrowers. This occurs when two instalments are deducted within a single month, which may happen due to technical glitches, incorrect bank instructions, or overlapping EMI cycles. While a single EMI can already be a considerable financial commitment, two deductions in one month can strain a borrower’s monthly budget.

To handle such situations, it’s essential to first check with your lender regarding the cause of the double deduction. Often, these are resolved swiftly once the error is identified. You can request a refund of the extra EMI paid or ask for it to be adjusted against future payments. Keeping a close watch on your loan account and transaction history is also advisable to prevent such instances from recurring.

Borrowers can avoid double deductions by ensuring that their bank details are correctly updated and the EMI dates are appropriately scheduled. Opting for electronic alerts from the bank can further help keep track of the deductions, reducing the risk of errors. Maintaining proper communication with the lender and promptly addressing any discrepancies will ensure smooth loan repayment.

Identifying double EMI charges

1. Check your bank statementRegularly review your bank statement to ensure that only one EMI deduction has been made for the month. Cross-check the dates and amounts of the transactions.

1. Review your loan accountLog into your loan account online or use the lender's app to verify the EMI payments. Look for any duplicate entries in the payment history.

1. Track SMS alertsBanks and financial institutions usually send SMS alerts after each EMI deduction. Ensure that you’ve received only one notification for the EMI payment.

1. Set up email alertsSubscribe to email notifications from your lender to track any unusual activity or multiple EMI payments for the same period.

1. Contact customer supportIf you notice double EMI charges, immediately contact your bank’s customer care or visit your branch to resolve the issue.

1. Avoid auto-debit issuesEnsure the correct EMI auto-debit instructions have been set with your bank to prevent multiple deductions.

Steps to address double EMI deductions

Step 1: Check your bank statement
Review your bank statement to confirm if double EMI deductions have been made. Cross-check the transaction dates and amounts for accuracy.

Step 2: Contact your lender
Immediately reach out to your lender’s customer service or visit the nearest branch. Inform them about the double deduction and request an official acknowledgment of the issue.

Step 3: Provide proof of deduction
Share your bank statement or any other proof showing the double EMI deduction. This will help expedite the resolution process.

Step 4: Request a refund or adjustment
Ask the lender to either refund the excess amount deducted or adjust it against future EMIs, depending on your preference and the lender’s policy.

Step 5: Monitor the status
Follow up with your lender regularly to ensure the issue is being resolved. Keep track of any communication and retain all records for future reference.

Step 6: Escalate if necessary
If the issue persists, escalate it to higher authorities within the financial institution or approach the banking ombudsman for further assistance.

Refund process for extra EMI deductions

If you've experienced extra EMI deductions, follow these steps to request a refund:

• Contact the lender’s customer care: Call or email the lender’s customer service team to report the extra deduction.

• Submit proof of overpayment: Provide your loan details, bank statement, and any necessary documents showing the extra deduction.

• File a formal request: Raise a refund request either through an online portal or at the lender’s branch.

• Receive an acknowledgement: Ensure you get an acknowledgement receipt for your refund request.

• Follow up regularly: Keep following up with the lender until the refund is processed.

• Check refund status online: Many lenders allow you to track the status of your request online.

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Conclusion

Experiencing a double EMI deduction for your Loan Against Property (LAP) can cause financial stress, but resolving the issue is usually straightforward. The first step is to immediately notify your lender’s customer service department, providing details of the extra payment. This ensures that the lender is aware of the issue and can begin processing a refund or adjusting the amount in future installments.

Once you have reported the double deduction, it is essential to track your complaint's status regularly. Lenders may require you to submit documentation such as bank statements or transaction receipts to verify the excess deduction.

Most lenders will either refund the extra EMI to your bank account or adjust it against your future EMIs. Keeping track of your loan payments and promptly addressing any issues helps in maintaining a smooth repayment process and avoids further financial inconvenience.