When an EMI is not paid on the scheduled date, the amount may continue to remain outstanding until the payment is received and updated in the loan account.
The consequences depend on the terms of the loan and the circumstances of the account. Customers may receive communications regarding the unpaid amount and may need to take prompt action to regularise the account.
Keeping track of due dates and payment confirmations can help avoid unnecessary payment issues.
Why can an EMI become overdue
An EMI can become overdue for several reasons.
Common causes include:
- Insufficient funds in the bank account.
- Failed NACH or e-mandate transaction.
- Technical issues during payment processing.
- Incorrect bank account details.
- Missing the payment due date.
Understanding the reason for the delay can help borrowers resolve the issue quickly and reduce the chances of future payment problems.
What charges may apply when an EMI is paid late
The charges applicable to a delayed EMI depend on the terms and conditions of the loan agreement.
| Situation | Possible outcome |
|---|---|
| EMI remains unpaid | Outstanding amount continues on the account |
| Missed payment | Applicable charges may arise according to the loan terms |
| Failed auto-debit | Charges, if any, depend on the applicable terms |
Customers should review their loan documents or account statements for the exact details.
How can you pay an overdue EMI
A general process may include:
- Check the outstanding amount.
- Verify whether the payment has already been debited.
- Select the available payment channel.
- Make the payment.
- Save the payment confirmation.
- Verify that the payment has been updated in the account.
Prompt payment can help reduce the period during which the amount remains overdue.
