Loans are a great way to take care of your urgent financial needs. You can then repay them in monthly installments which include the principal amount and the interest.
In this article, we will look into the loan overdue amount, its meaning, and the consequences of an overdue loan.
Borrowers avail of a loan from a lender for various reasons and over a period, repay the loan in monthly installments. However, there are instances when borrowers can’t repay the loan in time due to sudden financial hardships.
The amount that borrowers fail to repay within time is known as the overdue amount.
A single missed payment can lead to losing months of hard work as it will drastically reduce your credit score. If you are unable to pay your EMIs on time, it attracts a late penalty, increasing your overdue amount.
Additionally, in the case of secured loans, borrowers can lose their security if they miss repaying the loan. The lender first sends a 60-day notice to remind you of the overdue amount and the deadline. If they don’t receive the amount within the stipulated time, the lender has the right to auction off the asset pledged as collateral to retrieve the overdue amount.
The notice the lender sends beforehand contains all the information about the auction, including the current value of the asset, the time and date of the auction, and more. If the borrower thinks the item is undervalued, he or she may contest it. Additionally, after collecting the loan overdue amount, lenders must pay back the excess funds (if any) to customers.
If you have a loan overdue amount and wish to clear it, the first step to follow is to get in touch with your lender. Explain your financial situation and renegotiate the terms of the loan. The lender might offer another way to repay the loan or change your terms to suit your situation.
Moreover, if your financial condition is not good, then the lender might provide a permanent solution in the form of payment restructuring. You can also get an extension on the loan to make timely payments.
However, if you have too many loans and are finding it difficult to clear them, debt consolidation is the way to go. Several banks offer this smart solution to ensure borrowers repay loans.
As a last resort, you can consider loan settlement. Loan settlement allows you to pay only a part of your loan to the bank and the lender will consider the loan settled.
However, keep in mind that settling your loan has severe consequences apart from decreasing your credit score. It will stay on your credit report for several years, affecting your chances of securing a loan in the future.
Banks in India offer various user-friendly methods to clear your overdue loan payments. Let us take a look at some top banks and the ways you can complete the overdue payments.
You can pay your SBI overdue payments through NEFT. You can transfer the required amount from your SBI savings bank account to your loan account instantly.
Axis Bank facilitates overdue loan payments through the following methods -
To pay your Axis Bank loan overdue amount through internet banking, follow these steps -
STEP-1: Log into the official Axis Bank internet banking website.
STEP-2: Go to ‘Accounts’ → ‘Loans’ and select your loan account number.
STEP-3: Click on ‘Pay Overdue’ and select the account from which you want to make the payment.
STEP-4: Enter the amount that needs to be paid and enter the NetSecure code sent to your registered mobile number. The amount will be credited within 2 working days.
You can also make the payment from another bank’s net banking website. All you have to do is log into your bank’s official net banking website using your credentials. Then go to ‘Make Payments’ → ‘Overdue Payments’ → ‘Overdue Loan Payments’. The amount will be credited within 3 working days.
You can pay your Axis Bank loan overdue amount using your favorite UPI app through these steps -
STEP-1: Open your favorite UPI App (Google Pay, PhonePe, BHIM Axis Pay, etc.)
STEP-2: Click on ‘UPI’ → ‘Pay to VPA’. Enter the loan ID - loans.<loan account number>@axisbank
STEP-3: Enter the amount and click on ‘Submit’. The amount will be credited on the next working day.
To pay your loan overdue amount through Mobile banking, follow these steps -
STEP-1: Log into the official Axis Mobile App using your credentials.
STEP-2: Click on ‘Loans’ → ‘Pay Overdue’. Select the savings account you want to make the payment from.
STEP-3: Validate the transaction by entering your MPIN. The amount will be credited within 2 working days.
If you want to use any other bank account in Axis Bank or any other bank to make your overdue payment, you need to create an NEFT with these details -
Beneficiary Name -
Beneficiary Bank - Axis Bank
Beneficiary IFSC - UTIB0000245 (Alphanumeric Loan Number)
Beneficiary IFSC - UTIB0000004 (Numeric Loan Number)
Beneficiary Account No. - Your Loan Number
You can pay your loan overdue through cash or by dropping a cheque in the dropbox at your nearest Axis Bank branch. Make sure that the cheque has ‘CTS-2010’ on the left and it's not a post-dated cheque.
You can pay your ICICI Bank loan overdue amount using your debit card, internet banking, or scan and pay. Let us look at each of these methods in detail.
Making payments through debit cards is a fairly simple process. The steps are mentioned below for your reference -
STEP-1: Choose your bank and debit card type.
STEP-2: Provide your 16-digit alphanumeric loan number. Enter the amount you want to pay and click on ‘Pay Now’.
STEP-3: Wait till you are redirected to your payment gateway. Once done, confirm the payment, and enter the required authentication.
STEP-4: Your card will get debited instantly and you will receive an online confirmation.
Also referred to as Click to Pay, internet banking can also be used to pay your outstanding loan amount. The steps are as follows -
STEP-1: Select the bank from which you want to make the payment from the drop-down.
STEP-2: Enter your 16-digit alphanumeric loan number and the amount you need to pay.
STEP-3: Click on ‘Pay Now’ to be redirected to the payment interface of your bank.
STEP-4: Authenticate yourself using your ID and password.
STEP-5: Enter the amount you need to pay again, and your chosen bank will get debited. You will receive an online confirmation instantly.
You can scan and pay your ICICI Bank overdue amount by following these steps -
STEP-1: Enter your loan account number and click on ‘Verify’.
STEP-2: Check the details on the screen and enter the amount you want to pay.
STEP-3: Click on ‘Generate QR Code’.
STEP-4: Open your chosen UPI app and scan the QR code. Make the payment by entering your secure PIN.
STEP-5: You will receive a confirmation on your registered mobile number.
HDFC Bank allows you to make your overdue payments online via billdesk. Here is how you can do it -
STEP-1: Enter your HDFC Bank overdue loan account number and date of birth.
STEP-2: From the list, choose your net banker and click on ‘Pay’.
STEP-3: Wait to be redirected to the payment interface of your chosen net banker.
STEP-4: Enter your used ID and password to authenticate yourself.
STEP-5: Confirm the payment you want to make towards your loan account.
STEP-6: You will receive an online confirmation and a transaction reference number.
Payments of loan overdue amount of IDFC First Bank can be done via the following methods -
Follow these steps to pay through net banking, debit card, wallets, or UPI -
STEP-1: Go to Quick Pay EMI, and enter your loan account number or mobile number.
STEP-2: Choose one from the payment options mentioned, enter the CAPTCHA code, and click on ‘Proceed’.
STEP-3: Your loan account details will be displayed on the screen. Enter the amount you want to pay and click on ‘Proceed’.
STEP-4: Once you are directed to the bank’s website, choose the payment option you want.
STEP-5: Choose the account you want to pay from and the card details. Finally, complete the payment.
You can always make your loan overdue payments by visiting your nearest IDFC First Bank branch. Go to the service desk and provide your Loan Account Number, name, date of birth, and registered mobile number.
You can finally make the payment through cash, cheque, demand draft, or debit card. Don’t forget to check for your e-receipt for the payment made on your SMS or email.
IDFC First Bank customers can also make payments at their nearest Novopay retailers. Locate your nearest retailer and provide your Loan Account Number. You can make the payment through cash and collect the e-receipt through SMS or email.
Kotak Mahindra Bank customers can pay their loan overdue amount through their nearest bank branch or through online payment. Here are the details for making an online payment -
Beneficiary Bank - Axis Bank
Beneficiary IFSC - KKBK0000631
Beneficiary Account No. - Your Loan Number
It is wise and safe to repay your dues on time to avoid loan overdue and its extreme impact on credit score. If push comes to shove, there are several options at your disposal to help you overcome the situation. You can also opt for personal loan insurance to protect you in dire financial circumstances.
Cash constraints are generally the main reason behind loan overdue. When borrowers are strapped for cash, they tend to miss a payment or two to compensate for other requirements.
As a borrower, if you are unable to repay the loan under any circumstance, you can contact the lender and discuss a settlement. However, looking for other means and repaying the loan is wiser than settling it.
Lenders charge additional interest or penal interest every month on the overdue amount. Hence, avoiding paying loan installments leads to more debt.
Overdue amounts can lower your chances of getting another loan. However, before taking a loan to clear your past debt, you must first build a safety net to pay off the EMIs of the new loan.
Any form of delinquencies, such as late repayments, settlement, or missed EMIs, stay on your report for 7 years from the day of the issue.
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