An EMI bounce happens when the scheduled instalment is not successfully debited from the borrower's bank account on the due date. This can occur because of insufficient funds, an inactive account, a failed NACH mandate or technical issues.
If the EMI remains unpaid, the amount may continue to appear as outstanding until the payment is received and updated in the loan account.
Why do lenders make reminder calls after an EMI bounce
Reminder calls are generally made to inform borrowers that the scheduled payment has not been received and that an amount remains outstanding.
The purpose of these communications may include:
- Informing the borrower about the missed payment.
- Sharing the outstanding amount.
- Understanding whether there are payment-related issues.
- Providing information regarding available payment channels.
The exact communication process can vary between lenders and products.
When can you expect reminder calls after a missed EMI
The timing and frequency of reminder calls differ depending on the lender's processes and the status of the account.
There is no single timeline that applies to all borrowers. Customers should regularly monitor their loan account and respond promptly to communications relating to unpaid dues.
Ignoring communications may result in the outstanding amount continuing to remain on the account.
What information may be shared during a reminder call
| Information shared | Purpose |
|---|---|
| Loan account details | Helps identify the account. |
| Outstanding amount | Informs the borrower about unpaid dues. |
| Due date information | Helps the borrower understand the payment status. |
| Payment options | Provides information regarding available channels. |
| Contact details | Enables further communication if required. |
Borrowers should verify the identity of the caller before sharing any information.
