Introduction – Online Loan Repayment

Type of Loans

We all must have taken loan from one bank or other for our personal needs. The loan taken by banks are mainly of two types i.e. EMI based loan where we have to pay a sum of money in installment every month or Cash Credit type where the businessmen rotate his money throughout the financial year for his business.

EMI based loan are very common among us like housing loan, education loan, personal loan, vehicle loan etc. We will mainly talk about EMI based loan only.

Various banks provide online facility to pay your loan and make repayment through their website.

Links for making payment online for loan repayment

We are providing you links for the same for some major banks of India for your comfort.***

***Disclaimer: Although all efforts have been made to provide you correct link for making the loan repayment, but user is requested to properly check the link after clicking so as to make payment to correct website.

1. SBI Bank : Online E-Pay Loan SBI  : –
2. PNB Bank : Online Loan Repayment: – https://loanrepay.mypnb.in/
3. HDFC Bank: https://www.billdesk.com/pgidsk/pgmerc/hdfcemi/HDFCEMIDetails.jsp
4. ICICI Bank  – Online Loan Repayment ICICI
5. Axis Bank: https://www.axisbank.com/make-payments/investments-and-donation/loan-instalment-payment

Loan Repayments and their types

Lets discuss about various issues related to Loan repayment and their types.

Whenever a loan is sanctioned, the bank gives us a sanction letter describing all the loan amortization schedule which is nothing but a detailed monthly schedule of your payment for the said loan. EMI based loan can be divided into two categories:

1. Loan with Moratorium (Grace period) : In such loans, loan repayment begins after a grace period given by bank depending upon the purpose of loan. Examples are Education loan and Housing Loan. In Education loan, repayment starts after one year of completion of education or six months after getting the job whichever is earlier. Similarly, in Housing loan, there is a grace period upto the construction of house and its period varies from bank to bank. Remember that bank will be charging interest while the loan is under moratorium period.

 

2. Loan without Moratorium: In such type of loans, customer has to start the repayment as and when the loan is sanctioned as per EMI schedule shared by the bank. Examples of such loans are Personal loans, Vehicle loans etc.

How does EMI Loan Repayment works?

While paying the EMI, one must be aware that EMI contains both the portion of principal amount and interest amount. During the initial period of loan, EMI will be having major portion of interest and afterwards during the end of period, there will be more portion of principal in EMI amount.

Why EMI Loan repayment on time is important?

1. Timely loan repayment plays a crucial role in maintaining your CIBIL Score and hence you manage to have good credibility among financial institute. You will be able to take more loans in case of need and with lower interest rates as banks do negotiate on the basis of credit score.
2. If any EMI is missed by customer, Banks classify the account as SMA (Special Mention Account) and the same is shared with Credit Bureau agencies like CIBIL, Experian or Highmark etc. resulting in deterioration of your score.
3. Upon missing the EMI continuously for 90 days i.e. approx. 3 months, banks classify your account as NPA and then your score gets down and you have to make full payment to get back to standard account from NPA account and further bank may start legal actions for recovery of dues in case account turns NPA

Types of Loan Repayment available with customers:

1. EMIs

EMI stands for Equated Monthly installments that is made every month at a specified date. Many banks allow part prepayment or prepayment closure on some conditions.

Part prepayment means you can pay more amount than the EMI and prepayment closure means you want to close the account

Please note that in both the cases, many private banks takes charges depending upon their internal policies.

2. Bullet Payment: In this scenario, customer is asked to make interest payment on regular basis and pay the pending principal amount in lumpsum at closer of the account. This type of repayment mostly occurs with loan against FDRs or other liquid securities.

 

FAQs:

1. Can I repay my loan online?

• Yes, you can make loan payment online for selected banks as informed in above article. Some banks provide direct links and some provide the facility by logging in through their Internet banking or mobile banking services.

2. How to do Home loan repayment Online.?

• As provided by links above, you can make payment online for your loan accounts.

3. Can I repay my loan early?

• Yes you can make repayment of your loan earlier than defined by bank. But please note that various banks charge penalty in % if you make early repayment of your loan.

4. Can I Pay EMI using credit Cards?

• The answer to this question depends on the bank from where you have taken loan. Various private banks allow to pay the loan through your Credit card while making payment.

 

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