• Home loan disbursal and first EMI

Hi, i took a loan from a leading bank for towards the purchase of my apartment. I signed the documents on 30/6/18 and a cheque was written in the favour of the seller on that date. i did the registration on 10/7/18 and the cheque was handed over to them by the bank on that date. The seller cashed it on 13/7/18. I had given a date for the ECS of the EMI as the 10th of every month. A cheque was presented to my bank account on 26/7/18, as i was expecting the first EMI on 10/8/18, i did not have sufficient funds and the cheque bounced. 
Is this right on the banks side?
Asked 4 years ago in Civil Law

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9 Answers

Bank is at fault. Keep the written agreement regarding EMI date with you as an evidence to show if the bank takes any legal action against you.

If it a mistake on their part then they will not go the legal way.

Abhilasha Wanmali
Advocate, Nagpur
1022 Answers
1 Consultation

4.8 on 5.0

If your ECS date is 10 th of every month bank had no business to present cheque on 26 th July

2) raise the issue with bank

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

did you contact to bank about this issue?

Take ECS very seriously because an ECS debit mandate is just like a cheque issued by you. This means, you need to ensure you have enough funds in the account, so that your ECS gets cleared. If you bounce an ECS, you will have to bear the same fines as you would have for a bounced cheque. And this could be as much as Rs 750. Keep in mind that your bank runs an ECS and there isn't enough funds, bank may run an ECS again at a later date (usually a couple of days), that is after a few days. But, if you fail to have funds by that date, your ECS will bounce. Also, re-run of an ECS is not your right but dependent on your bank's policy.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

What you mean by the above scenario did the seller got paid twice. If the bank has made such mistake then you can claim refund from them.

Prashant Nayak
Advocate, Mumbai
27274 Answers
88 Consultations

4.4 on 5.0

Yes there is nothing wrong from the bank side . as soon as Bank issues the draft and informs the date of ECS as well.

You cannot expect a day supporting your EMI based on encashment of the cheque issued by the bank

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

bank has to stick to the ECS date provided by you and accepted by them

they cannot present your cheque on a prior date and make you liable

you need to write to the bank with proof of the ECS date instructed by you and accepted by them

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

If it is was decided on paper that the date of EMI would be the 10th of every month, then you are on the safe side. However, it is advisable that you reissue a cheque dated for the 10th at the earliest to avoid any possible legal repercussion.

Shekhar Banerjee
Advocate, Delhi
156 Answers
1 Consultation

5.0 on 5.0

Dear Client,

If it was clearly mentioned in the loan agreement that the due date will be 10th and first EMI will start from 10th than it`s deficiency in service at bank end.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

You can talk to the bank about it and make the payment to the bank.

Actually the bank should start the recovery only after the the following month of settlement of loan amount and not within that.

You may make written representation to the higher officer of the bank about this irregularity and may convince them that you will honor payments properly on the due dates from next payment date onwards.

Since you are the borrower and also your cheque has bounced due to insufficient funds, you may not have big voice to agitate the bank's such atrocious activities.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

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