How to Change EMI Date for Personal Loan?

Why You Might Want to Change Your EMI Date

There are several reasons why you might consider changing your EMI date:

• Financial Strain: There may be times when you come across a sudden emergency situation such as medical emergencies or job loss. During those situations, you may find it challenging to pay your EMI on the scheduled date. Changing the EMI date may provide you relief temporarily and help you to manage your finances better.
• Cash flow: You must have enough money flowing in your bank account around the EMI date to avoid any kind of penalties. Make sure you set an EMI date during the period when your account has enough funds. It should align with your income dates.
• Change in payment options: You may prefer different options to make EMI payments. Adjusting your EMI dates to the time which aligns with your payment method lessens the risk of delays or missing EMIs
• Aligning multiple EMIs:  If you have multiple EMIs going on in a month, setting a date according to your funds without causing strain on your finances is important. This helps in better EMI and finance management which reduces the risk of burden.

Eligibility Criteria for EMI Date Change

While most lenders allow a date change, it is not an absolute right and is subject to the bank’s internal policies and your specific loan’s status.

Who Can Apply and How Many Times

The eligibility for an EMI date change is determined by your repayment track record and the lender’s policy on modifications.

• Borrower Status: The request must be initiated by the primary borrower or joint borrower(s) named in the loan agreement.
• Frequency: Most lenders, especially for personal loans, restrict the EMI date change to only once during the entire loan tenure. This is because changing the payment schedule requires a formal modification of the loan contract, which is an administrative overhead for the financial institution.

Account Status Requirements

Your loan account’s current status is the most critical factor in the approval process.

• Good Standing is Mandatory: The loan account must be in “good standing”. This means there should be no overdue payments, missed EMIs, or default status on the loan at the time of the request. Lenders will require you to clear any existing arrears or outstanding charges before they process a modification request.
• Repayment History Review: Lenders always review your recent repayment history to assess your creditworthiness. A history of timely payments improves the chances of quick approval. [Source: CIBIL Reporting Guidelines for Lenders]

Documentation Required for EMI Date Change

While the core of the request is the application letter, the lender may require supporting documents to process the change and update the payment mandate.

Complete Document Checklist for Submission

The required documentation generally revolves around confirming your identity, your loan details, and most importantly, updating the payment instruction (ECS/NACH mandate).

• Duly Filled and Signed Request Form/Letter: The formal application requesting the change.
• Updated ECS/NACH Mandate Form: Since the debit date is changing, you will need to submit a fresh Electronic Clearing Service (ECS) or National Automated Clearing House (NACH) form with the new date reflecting in the mandate.
• New Set of Post-Dated Cheques (PDCs): If you are repaying your loan via PDCs, you will have to submit a new set of cheques with the revised dates.
• Identity Proof: A copy of your PAN Card or Aadhaar Card for verification.
• Income Proof (Optional): In some cases, especially if you cite ‘change in salary date’ as the reason, the lender may ask for your latest salary slip or a bank statement highlighting the new salary credit date to verify the request.

EMI Date Change Process and Typical Timeline

Once the application is submitted with all supporting documents, the process is internal, but you should track the status to ensure a smooth transition.

What Happens After Application Submission

The lender follows a structured internal process after receiving your request.

• Request Receipt and Verification: The loan service centre logs the request and verifies the details, including your identity, loan status (checking for defaults), and eligibility.
• Interest Calculation: If the date is shifted forward (e.g., from the 5th to the 15th), the gap of 10 days is considered a “broken period.” The lender calculates the broken period interest for these extra days. This interest ensures that the EMI amount remains the same going forward, but the bank receives the interest for the extended period.
• Communication of Charges: The lender will communicate the calculated broken period interest and any administrative fees to you via SMS, email, or a formal letter, often within 7 days of receiving the request.
• Payment and Approval: You are required to pay the one-time interest/fee amount. Once the payment is confirmed, the lender updates the ECS/NACH mandate in their system and informs the banking clearing system of the new debit date.
• Confirmation: You will receive a final confirmation via email or SMS, along with an updated repayment schedule reflecting the new EMI date and the first cycle the change will take effect.

Also Read: Loan Repayment Schedule | Loan Amortization Calculator

Examples of Processing Times by Lender Types

The processing time can vary based on the lender type, mode of application, and efficiency.

• Digital Applications (Mobile/Portal): For lenders with a robust digital system, the approval and update process can be initiated quickly, often reflecting the change within 7 to 15 working days.
• Physical Applications (Branch/Form): Submitting a physical form requires manual processing, which can take longer. From the time you submit the request to the final activation of the new date, it may take between 15 to 25 working days. It is crucial to maintain sufficient funds in your account on the existing date until you receive confirmation that the new date is active.

EMI Date Change Charges, Fees, and Potential Impacts on Loan Tenure & Interest

It is important to understand the financial implications of changing your EMI date, as a seemingly small administrative change can have a cost.

Typical Fees and Lender Transparency Rules

Changing the EMI date is not always free, as it involves administrative effort and system updates.

• Administrative/Processing Fee: Most lenders charge a nominal, one-time administrative fee for this service, typically ranging from ₹200 to ₹500 plus GST. This fee must be paid before the new date is activated.
• Broken Period Interest: As mentioned, if you are shifting the date forward (e.g., from the 1st to the 15th), you are delaying the payment of the principal and interest portion by 14 days. The lender charges a one-time broken period interest for this extended period to ensure the EMI amount remains level and your loan is not impacted in the long run. Lenders are mandated by RBI Fair Practices Code to be completely transparent about these charges before you confirm the change.

How EMI Date Affects Tenure and Interest

A simple change in the EMI date generally does not change the total loan tenure or the individual EMI amount, provided the broken period interest is paid.

• Impact on Tenure and EMI: The EMI amount and the total number of EMIs (tenure) are fixed by the loan agreement and amortization schedule. A one-time date shift does not alter these fundamental terms.
• Impact on Total Interest Paid: The only effect on the total interest is the one-time broken period interest you pay during the transition month. After that, your standard amortization schedule resumes, and the overall interest paid over the life of the loan remains virtually the same as it would have been. The change only affects the schedule, not the fundamental cost of the loan.