How to Pay your Loan EMI overdue? 

One of the biggest advantages of loan EMIs is that it’s easy to plan repayments in advance. The EMI remains the same every month for the entire tenure of the loan. This helps borrowers plan their expenditures and purchases. They can easily set aside the EMI amount every month, out of their monthly budget.  

However, despite one’s well-intentioned planning, there may be situations where it may not be possible to pay the EMIs on time. A job loss, illness in the family, salary cuts, or unexpected expenditures can derail the budget, leaving the borrower with no funds to pay the EMI on time.  

In such cases, borrowers may miss paying their loan EMI overdue on time. If you’re facing this scenario, no worries. Here, in this guide, we show you how you can repay overdue EMIs and other late loan charges online. 

How to pay an EMI overdue on your loan?  

All leading lenders (banks and NBFCs) make it convenient for borrowers to get back on track if they have missed a loan EMI. Most lenders offer online payment facilities that you can use to repay overdue EMIs. The process takes just a few clicks and is completed within a couple of minutes. It's similar to making any other online transaction. 

Here are the various methods you can use: 

Online Methods 

  1. Internet Banking  

You can use this method if your savings bank account and loan account are held with the same bank. Log in to your internet banking account. Navigate to your loan account. Select the loan account. See if there are any options for "Pay Overdue." If yes, select this option. Choose the account from which you want the amount to be debited. Enter the payment amount. Complete the transaction. 

The amount will be credited into your loan account within a maximum of 2 working days.  

  1. UPI App  

UPI (Unified Payments Interface) is a payment gateway that you can use to pay the EMI overdue. Initiate a payment transaction on your preferred UPI app like Google Pay. Pay using the VPA (Virtual Payment Address) of the loan. Different banks have various formats. 

For instance, the key for the loan ID of Axis Bank is: loans.@axisbank.  

You can find this ID by visiting your bank's website or contacting the customer service team. Enter the amount overdue and click submit. The amount is credited in your loan account within a few hours or one working day. 

  1. NEFT  

You can raise an NEFT (National Electronic Funds Transfer) request to pay the overdue amount to your loan account. For this, you need the following details: 

  • Beneficiary bank 

  • Beneficiary name  

  • Beneficiary account number (note that this is the loan account number and not your savings bank account number)  

  • Beneficiary IFSC code (you can look this up online)  

Add the beneficiary details and complete the payment via NEFT. It takes around a few hours for the EMI overdue to be credited in your loan account.  

  1. Mobile Banking App  

Log in to the mobile app of your bank. Tap on the tab "Loans." Look for the option "Pay Overdue." Select the account from which you want the amount to be debited. Validate the transaction with the OTP sent to your mobile. The amount is credited into your loan account within 2 working days. 

Offline Methods  

Besides the online payment options, you can also pay the overdue amount using any one of these two offline methods. 

  1. By Cheque  

You can write a cheque for the overdue amount and deposit it at the drop boxes available at the branch. Note that the cheque should not be post-dated if you want the overdue amount to be paid immediately. 

  1. By Cash  

You can also settle the overdue amount by cash. Visit your nearest bank branch and pay the money to the officer in charge of loans. 

Conclusion 

Missing loan EMIs have various consequences, such as a fall in credit scores, an increase in the interest rate, or possession of your pledged asset/property. To avoid these negative consequences, you need to pay your EMI overdue on time. If, due to unavoidable circumstances, you missed paying your EMI dues, use any of the methods listed here to repay it. and, get your loan payments back on track.  

FAQS 

1. Can I pay my EMI after the due date? 

Paying the EMI after the due date usually attracts late fees. Paying promptly 

helps in avoiding a negative credit score and penalties. 

2. How do I settle a pending loan? 

If you are unable to repay your debt completely or on time, you can negotiate with the lender. The lender may give you the option to settle your loan based on your situation.  A period of non-repayment for 6 months may be given to you.