How to pay EMI?

Congratulations, you have received your loan from Credy. But wait, the transaction is still not over. You have to repay these EMIs on or before due dates to enjoy offers, get top-up loans and much more. You can do online EMI payment using multiple methods.

Here is why you should pay your EMI on time:

  1. Improve credit score:
    paying EMI on time is the best way to improve your credit score. Credit bureaus (companies that issue credit scores like CIBIL, Experian, Equifax, and CRIF) give high weight to on-time repayments. This also means that if you are delayed on your EMI payments, your credit score can drop by a lot. Some customers on Credy who delayed their payments saw their credit score reduce by as much as 150 points! i.e. for e.g, from 750 to 600. Here are 5 proven ways to improve credit score if you have any delayed payments on your credit profile.

  2. Get top-up loan:
    if you pay your EMI on time, you will be eligible for top-up loan. Top-up loans are easier to take than the first loan.

  3. Improve credit score:
    For every Credy EMI that you pay before the due date, you get Rs 50 off! We believe in rewarding good customers with direct cash benefits.

Methods of Paying EMI

Depending on your choice of method, you can pay your EMIs using multiple methods:

  1. Auto-debit
    What is auto-debit meaning? Auto debit is an instruction that you give to your bank to allow the lender to deduct EMI on due dates. Auto debit via NACH is the preferred method of paying EMI. Your signature will be taken on an auto-debit instruction, or “NACH mandate”. This mandate instructs your bank to allow auto-debit of EMIs by the lending company (like Credy). Once your auto-debit is active, you can just maintain sufficient balance in your bank account and not worry about anything else. Tip: Make sure you confirm with your lender that auto-debit instruction is active before the first EMI date. If it is not, you should pay first EMI online.

  2. Online EMI Payment
    You can pay EMI online via your debit card or net banking. At Credy, you will get EMI receipt in real-time when you make the payment. Most of our customers pay via our Android App.

  3. NEFT / IMPS
    Your lender will share details of the account to which you should transfer the money.

  4. Wallets
    We also support repayment via wallets. This can be useful for making small part payments

  5. Cash
    If you want, we can also arrange a collection visit to your office or residence for cash collection. Note that this would have additional collection charges.

What if I am late on EMIs?

If you are late on your EMIs, the following will happen:

  1. Most importantly, your delays will be reported to 4 credit bureaus (CIBIL, Experian, Equifax, and CRIF). This will reduce your credit score. Our analysis shows that each month of delay, depending on a few factors can reduce your credit score by around 50 points. So if your credit score was 720 when you took the loan, with 1 month of delay, your score can reduce to around 670. More delays would reduce the credit score further. Remember, just like health, credit health is much harder to repair than to maintain. Prevention is better than cure. Drawbacks of bad credit score are:
    • Rejection of future personal loan and credit card applications.
    • Rejection of important loan applications like home loan, car loan, etc.
    • Higher interest rates and fees on future loans.
    • Perception of lack of intent to repay obligations.
    • Impossible to erase credit history.

  2. You will be charged late fees. Remember, EMI late payment charges can be heavy since they are designed to discourage delays. You can easily end up paying more in late fees than interest if you are not careful.

  3. Legal action - negligence on the cheque or NACH bounces can result in legal issues. Cheque or NACH bounce is considered a criminal offense under Section 138 of Negotiable Instruments Act and Section 25 of Payments and Settlements Act.

What should I do if I am late on EMI but cannot pay it?

In such a case, you can do the following:

  • Stop taking additional loans - this can reduce your credit score as well as increase your interest expenses.

  • Communicate with the lender - stay in touch with your lender and keep them updated about your repayment plan. Don’t avoid calls or visits by lenders.

  • Make part payments- making part payments is the best way to convey to your lender that you have the intent to repay. It will also help you reduce EMI late payment charges.

If you have any questions related to repayments, email us at repayments@credy.in or call our collections team at 080 4680 5616.