Excess EMI refund process for personal loan

What is excess EMI payments?

Excess EMI payments occur when a borrower pays more than the required monthly installment for their loan. This can happen due to various reasons, such as an error in the payment amount, an additional payment made intentionally to reduce the loan tenure, or even a duplicate payment made by mistake. When you pay more than your scheduled EMI, the excess amount is typically credited towards the principal, reducing the outstanding loan balance faster. However, in some cases, the excess payment might not be automatically adjusted, leading to a credit balance in your loan account. It’s important to regularly review your EMI payment details to ensure that your payments are being applied correctly and to avoid any confusion regarding your loan status.

How to identify if you’ve paid excess EMI?

1. Review your loan statement: Start by reviewing your loan statement through your Account or the customer portal. Look for any discrepancies between the amount paid and the scheduled EMI.

1. Check your bank account: Verify your bank statements to see if any duplicate or overpayments were made during the loan tenure.

1. Compare with payment schedule: Match the payments you’ve made with the official payment schedule provided by your lender to identify any excess amounts.

1. Monitor credit balance: If your loan account shows a credit balance or an unexpected reduction in the principal, it could indicate an excess EMI payment.

1. Contact customer service: If you’re unsure, contact your lender’s customer service to confirm whether an excess payment has been made.

Steps by step guide to claim an excess EMI refund

1. Log in to the customer portal: Access the customer portal to review your loan account and confirm the excess payment.

1. Download your loan statement: Obtain a detailed loan statement that clearly shows the excess EMI payment.

1. Contact customer service: Reach out to your lender’s customer service team to inform them of the excess payment and request a refund.

1. Submit a formal request: You may need to submit a formal written request or fill out an online form through your Account to initiate the refund process.

1. Provide necessary documentation: Be prepared to provide supporting documents, such as bank statements or payment receipts, that confirm the excess payment.

1. Follow up regularly: Keep in touch with the customer service team to track the status of your refund request and ensure timely processing.

1. Receive the refund: Once the lender has processed your request, the excess EMI amount will be credited back to your bank account or adjusted against future payments as per your preference.