Why Extra Charges Appear on Your Loan Statement

Extra charges on a loan statement are amounts recorded in addition to the regular principal, interest, or scheduled EMI. These charges may arise from specific events during the loan period and apply according to the terms governing your account. They may not appear in every billing cycle because certain charges become applicable only when a specific event occurs, such as a delayed or overdue payment or a failed EMI transaction. Depending on your loan terms and account activity, the statement may include entries for delayed payments, failed or bounced EMI transactions, applicable service-related charges, other charges specified under the loan terms, or account adjustments and transaction-related entries. The exact charges applicable to your loan should be verified against your loan agreement and account records. An additional entry should not automatically be considered a penalty. Check its description, date, amount, and related account activity to understand why it has been recorded.

Why do extra charges appear on loan statements?

Extra charges may appear when a specific account event makes a charge applicable under the terms of the loan. For example, a delayed EMI or failed repayment transaction may result in an applicable charge being added to the account. An entry can also appear because of an account adjustment or another charge provided for under the relevant loan terms.

The applicable amount and conditions depend on the loan terms. Specific charge amounts should therefore be verified from authorised loan records rather than assumed from a general list of charges.

You can identify an unexplained loan charge by comparing the statement entry with your loan terms, payment history, and transaction records. For loans serviced through Bajaj Finance platforms, you can review available account information through the Bajaj Finance App or My Account portal.

To check your loan statement:

1. Open the Bajaj Finance App or visit the My Account portal.
2. Sign in using your registered mobile number and OTP.
3. Go to My Relations or Loans / Portfolio.
4. Select the relevant loan account.
5. Open Loan Details and select View Statement / SOA.
6. Review the transaction history, outstanding amount, and additional entries.

When reviewing an unexplained charge, compare the following details:

• Charge description and date
• Amount shown in the statement
• EMI due date
• Payment date and transaction status
• Bank statement and payment confirmation
• Relevant loan agreement or applicable terms

Review the charge details against your payment records and loan terms to identify the reason for any unexplained amount. If it remains unclear, keep the relevant documents ready and raise a servicing request through the appropriate official channel for verification.

What should you do if you disagree with an extra charge?

If an extra charge appears incorrect or cannot be explained by your loan records, raise a query with the relevant supporting documents. Providing clear transaction details can help the account be reviewed against the applicable records and loan terms.

• Loan account number: Helps identify the loan account under review.
• Charge description and date: Identifies the specific statement entry being questioned.
• Payment date and amount: Helps compare the repayment with account records.
• Transaction reference number or UTR: Helps trace the relevant payment transaction.
• Bank statement: Shows the debit and transaction details.
• Loan statement: Shows the charge, payment entries, and outstanding balance.

If you have received a legal notice, compare the amount mentioned in the notice with your latest loan statement. Raise any genuine discrepancy through the appropriate official channel, while continuing to address any undisputed outstanding dues. Any correction, if applicable, will depend on the outcome of the account review.

Why were the extra charges not communicated earlier?

An extra charge may appear after a specific account event makes it applicable under the terms governing your loan. Some charges may be stated in the loan agreement or applicable schedule of charges but become relevant only when certain conditions are met. For example, a charge linked to delayed repayment may not apply when all EMIs are paid within the applicable timelines. Similarly, a charge related to a failed transaction may arise only after the repayment attempt is unsuccessful. Therefore, an additional entry on the loan statement does not necessarily mean that a new charge has been introduced. If you do not recognise a charge, review your loan agreement, applicable terms, previous statements, and payment records. If these documents do not explain the entry, raise a query through the appropriate official channel and provide the relevant account and transaction details for verification.