Ask Mint | Electronic clearing scheme helps avoid late EMI payments

Ask Mint | Electronic clearing scheme helps avoid late EMI payments

To help readers keep pace with what’s happening in the real estate sector, Mint’s Q&A will appear every other Monday.

I have been regularly paying my equated monthly instalments (EMIs) through cheque. In the recent past, however, there has been a lot of delay in crediting my EMI payments at the lender’s end despite me submitting the cheque on time.

Added to my woes, I am charged a penalty for delayed payment and every few months I keep getting these letters from the institution.

I have on numerous occasions brought this to the notice of the officials and have even written a letter, but there is no improvement.

Please advise if there is an alternative way to communicate my problem.

To overcome these issues, you could opt for the facility whereby your EMI is deducted directly from the salary by your employer itself and forwarded to the lender.

Alternately, you could use the electronic clearing scheme, or ECS facility, by instructing your bank to make monthly payment on your behalf to the loan provider. This will ensure that the EMIs are directly credited on a date specified by you, thus leaving no room for manual error.

As for escalating your complaints, you may visit the organization’s website and submit it.

Most professionally managed organizations have a centrally-managed grievance redressal mechanism, which also addresses the concerns submitted through the Internet.

My brother is selling a house to me at prevailing market rates. I have already paid 30% of the price to him through cheque and plan to take a loan for the remaining amount for a tenure of five or six years. I am told that because it is a family transaction, it will be difficult for me to get a loan. What is your advice?

It is true that transactions between family members usually require extra scrutiny. This is because the lender needs to establish the genuineness of the deal, and ascertain that the price is right. The attempt is to try and ensure that the deal is a real one and is not being undertaken for fund-raising or for purposes other than what a housing loan is meant for.

My advice is that you approach the loan provider with all your supporting documents and facilitate in their scrutiny process.This can help expedite the loan approval.

Renu Sud Karnad is joint managing director, HDFC. Readers may write in with their queries and comments to