Understanding what is charged, why it is charged, and where to confirm it
When an EMI is not paid by its due date, the loan account may show additional entries beyond the EMI itself. These overdue EMI charges, which usually include late payment charges, are linked to the delay in payment and are applied according to the terms of the loan agreement. Because they appear as separate line items, they are often mistaken for an error or confused with other deductions on the account.
What overdue EMI charges are
Overdue EMI charges are the amounts that may be added to a loan account after a scheduled EMI remains unpaid past its due date. They are separate from the EMI, which covers the principal and interest agreed at the time of disbursal. A charge does not change the EMI amount or the repayment schedule. It is an additional entry that sits alongside them until the overdue amount is cleared. Repayment dates are agreed when the loan is sanctioned, so the loan agreement provides for a charge when a payment is delayed.
Late payment charges
Late payment charges are the charge applied for the delay itself. They are tied to the overdue EMI and are calculated as per the terms the borrower accepted in the loan agreement. Since terms can differ between loan products, the same delay may not produce the same charge on two different accounts.
Charges linked to a failed payment
Where an EMI was meant to be debited automatically and the debit failed, a separate return charge may also appear. This is distinct from the late payment charge, even though both can show up within the same billing cycle. Reading them as two entries instead of one makes the total amount easier to understand.
Where to find overdue EMI charges on your account
The same charge can be viewed in more than one place, and each source serves a slightly different purpose. To see the current pending amount, customers can check overdue status by logging in to their Bajaj Finance account.
| Where to look | What it shows | Best used for |
|---|---|---|
| Bajaj Finance App or Web account | The current overdue amount and recent entries on the loan | Checking what is pending right now |
| Account statement | Each EMI, payment and charge as a dated entry | Matching a charge to a specific due date |
| Loan agreement | The terms under which charges apply | Confirming how a charge is determined |
| SMS and email alerts | Notifications about a failed debit or pending amount | Spotting a delay soon after it happens |
Disclaimer: Charge amounts and applicable terms vary by loan product and agreement and are subject to change. For the exact charge applicable to a specific account, customers should refer to their loan agreement.
How to read an overdue EMI entry on your statement
A statement lists each transaction with a date and a description, and an overdue EMI charge appears as its own line instead of being merged into the EMI.
Check the EMI and the charge separately
Start by confirming the EMI for the month, then look for the charge as a distinct entry. Seeing the two apart makes it clear which part of the amount is the instalment and which part is the charge for the delay. If an overdue amount is still pending once the two are clear, customers can pay overdue EMIs through the same account.
Match the charge to the due date
Compare the date of the charge with the EMI due date and the date the payment was actually received. If the payment reached the account after the due date, the charge is consistent with the terms. If it was received on or before the due date but a charge still appears, that mismatch is the one worth raising.
How to confirm the exact amount
The loan agreement sets out how charges are determined and is available through the Bajaj Finance App or Web. Reading the relevant section alongside the statement entry shows whether the charge was applied as per the agreed terms, which is more reliable than comparing amounts with other borrowers, since charges depend on the loan product.
What to do if an overdue EMI charge looks incorrect
If a charge does not match the due date, the payment date or the terms in the loan agreement, raising a service request through the Bajaj Finance App or Web is the fastest way to get it checked. Keeping the bank statement, the payment confirmation and the transaction reference ready helps the query move faster. Service requests are typically resolved within 48 business hours.
Bajaj Finance Limited
Bajaj Finance Ltd. (‘BFL’, ‘Bajaj Finance’, or ‘the Company’), a subsidiary of Bajaj Finserv Ltd., is a deposit taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 69.14 million customers. BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing, and CRISIL AAA/Stable & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BB+/Positive and a short-term rating of B by S&P Global ratings. To know more, visit www.bajajfinserv.in.
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