The EMI amount for your loan will get automatically deducted/debited from your repayment bank account on the 5th of every month.
To make sure this can automatically happen, you need to set up an auto-debit (also called NACH or e-mandate). This is an agreement between you, your bank, and our lending partner (Prefr) that allows Prefr to send a debit request for your EMI amount to your bank, to debit the amount on the 5th of every month.
Important points:
- You will get reminders before your EMI date (to make sure you have sufficient balance). If you don’t have enough balance and the auto-debit fails, then there can be a penalty charged by your bank (called NACH charges). The amount may vary from bank to bank.
- If the EMI auto-debit fails, the bank will again try on the 10th and 20th also (meanwhile will send you reminders so you can manually pay). If your auto-debit fails on these dates also, then you will also be charged a penalty from Prefr (lending partner) for Rs. 350 (it’s called bounce charges).
- If you have already paid some amount before the EMI date, then the balance amount request will be sent.