3 min
15-April-2025
Loan Against Securities (LAS) offers a convenient way to access funds by pledging your financial assets like shares, mutual funds, or bonds. While it provides liquidity without liquidating your investments, it comes with the responsibility of timely EMI payments. Understanding how EMI deductions work under LAS is crucial to ensure smooth repayment and avoid penalties. EMIs are typically auto-debited from your linked bank account on a fixed date each month. However, issues like insufficient balance, bank technicalities, or incorrect mandate setup can lead to missed deductions. This can trigger late fees, impact your credit score, and even lead to unnecessary disputes with the lender. It’s essential to track your EMIs regularly, be aware of deduction dates, and know what to do if the loan EMI is not deducted. In this guide, we’ll explore how EMI deductions work in LAS, common issues borrowers face, and how to stay on top of your loan obligations.
First and foremost, consistent EMI payments help maintain a healthy credit score. Any missed or delayed payments, even if due to technical glitches or insufficient balance, are reported to credit bureaus and can negatively impact your creditworthiness. Regularly checking whether EMIs are being deducted on time ensures you avoid such setbacks.
Secondly, monitoring deductions helps you avoid unnecessary penalties and interest charges. If an EMI is missed and not addressed promptly, it may lead to late fees or increased interest liability, affecting your overall repayment schedule. Being proactive allows you to correct issues like loan EMI not being deducted due to a failed mandate or system error.
Additionally, tracking EMIs offers clarity on your outstanding balance and the interest being charged, helping you plan prepayments or closure more effectively. It also allows you to detect unauthorised deductions or discrepancies in loan statements, which can be rectified quickly when spotted early.
Moreover, regular monitoring ensures that your pledged securities remain safe. If multiple EMIs are missed, lenders may initiate recovery by selling pledged securities—something every borrower wants to avoid.
In short, keeping a close eye on EMI deductions is not just about making timely payments; it's about protecting your credit profile, investments, and financial reputation. With simple tools like SMS alerts, mobile banking, and lender portals, you can easily stay updated and take quick action if something seems off. Responsible tracking empowers you to stay in control of your LAS and avoid potential pitfalls.
Check bank statements regularly
Go through your monthly bank statements to confirm that EMIs are being auto-debited on the scheduled dates. Look for transaction IDs and descriptions related to the loan account.
Enable SMS and email alerts
Opt-in for SMS and email notifications from your bank or lender. These alerts will notify you every time an EMI is deducted, giving you real-time updates.
Use net banking or mobile app
Log in to your bank's net banking portal or mobile app to view upcoming EMI schedules, past deductions, and outstanding loan amounts.
Access the lender’s loan management portal
Most NBFCs and banks offer dedicated loan servicing platforms where you can track EMI payments, download statements, and raise queries.
Download monthly loan statements
Download and review monthly loan account statements. These documents provide a detailed breakup of principal, interest, and remaining balance.
Cross-verify with payment schedules
Match the deducted EMI amount with your repayment schedule to ensure that the correct amount is being deducted and applied as intended.
Maintain a personal EMI tracker
Create a simple spreadsheet or use budgeting apps to log each EMI deduction, along with dates and amounts. This can help identify any missed or duplicate payments.
Set calendar reminders
Mark your EMI dates on a digital calendar to manually verify deductions around those dates, especially if you rely on multiple bank accounts.
Monitor your credit report periodically
Check your credit report every few months to ensure your EMI payments are being reported correctly. Any discrepancies should be addressed immediately.
Contact customer care for confirmation
If in doubt, call or email your lender’s customer support to confirm recent EMI deductions and get updated on the current loan balance.
Tracking EMI deductions ensures you stay on top of your loan and helps you act quickly if an issue like a loan EMI not deducted occurs. It’s a smart habit that safeguards your financial health.
Insufficient account balance
One of the most frequent reasons for EMI failure is not maintaining enough funds in the linked bank account on the deduction date.
Banking technical glitches
Temporary issues with banking servers or the National Automated Clearing House (NACH) can delay or stop EMI deductions.
Incorrect mandate setup
Errors in setting up the auto-debit mandate—such as incorrect account details or mismatched signatures—can lead to EMI rejection.
Mandate expiry
Auto-debit mandates have a validity period. If not renewed or re-authorised, EMI deductions may fail after expiry.
Multiple linked accounts confusion
If you’ve changed your repayment account but haven’t updated it with the lender, EMIs may continue to get debited or fail entirely.
Public Holidays or non-banking days
EMI deduction scheduled on a bank holiday may get postponed, affecting your repayment history if not handled correctly.
Unnotified change in loan terms
Sometimes, changes in interest rates or repayment schedules are not clearly communicated, resulting in confusion over the EMI amount.
Duplicate or partial deductions
In rare cases, technical errors may cause either partial deduction or multiple deductions for the same EMI.
System delays in EMI confirmation
Even after a successful deduction, delays in system updates can lead to confusion or false alerts of non-payment.
Lack of communication from the lender
Not receiving timely alerts or statements can make it difficult to stay updated on EMI status.
Identifying and resolving these issues promptly is essential to maintain a clean loan record and avoid late fees or credit score impact.
Avoid missed payments
Monitoring your deductions ensures you never miss an EMI due to oversight or technical error, keeping your repayment track clean.
Protect your credit score
Timely EMI payments are reported to credit bureaus. By tracking regularly, you avoid errors that could negatively impact your credit rating.
Detect technical or mandate issues early
If there’s an issue like mandate failure or system delay, you’ll be able to spot it immediately and take corrective action.
Prevent penalties and late fees Missed or delayed payments often attract additional charges. Tracking helps you take steps in advance to avoid such overdue payment scenarios.
Better loan management
You gain clear visibility into your outstanding balance, upcoming dues, and payment history—allowing for better financial planning.
Option to pay in advance If you have surplus funds, tracking your EMI cycle helps you decide the right time to Pay in Advance and reduce your interest burden.
Quick dispute resolution
Regularly reviewing deductions means any discrepancies—like partial or duplicate EMIs—can be reported and resolved quickly.
Informed decisions for prepayment or closure
With accurate EMI tracking, you can plan for loan prepayment or closure more effectively and at the right time.
Keeps pledged securities safe
Regular payments ensure that your pledged securities are not at risk of liquidation due to default.
Improves financial discipline
Cultivating the habit of EMI tracking improves overall money management and keeps your financial goals on course.
Tracking your EMIs isn’t just a best practice—it’s a financial safeguard. It gives you control, ensures transparency, and helps avoid problems like overdue payment or missed deductions, ensuring a stress-free loan journey.
Why tracking loan against securities EMI deductions is important?
Tracking EMI deductions for your Loan Against Securities (LAS) is a crucial aspect of responsible loan management. While LAS offers flexibility by allowing you to borrow against your investments without liquidating them, overlooking EMI deductions can result in unexpected complications.First and foremost, consistent EMI payments help maintain a healthy credit score. Any missed or delayed payments, even if due to technical glitches or insufficient balance, are reported to credit bureaus and can negatively impact your creditworthiness. Regularly checking whether EMIs are being deducted on time ensures you avoid such setbacks.
Secondly, monitoring deductions helps you avoid unnecessary penalties and interest charges. If an EMI is missed and not addressed promptly, it may lead to late fees or increased interest liability, affecting your overall repayment schedule. Being proactive allows you to correct issues like loan EMI not being deducted due to a failed mandate or system error.
Additionally, tracking EMIs offers clarity on your outstanding balance and the interest being charged, helping you plan prepayments or closure more effectively. It also allows you to detect unauthorised deductions or discrepancies in loan statements, which can be rectified quickly when spotted early.
Moreover, regular monitoring ensures that your pledged securities remain safe. If multiple EMIs are missed, lenders may initiate recovery by selling pledged securities—something every borrower wants to avoid.
In short, keeping a close eye on EMI deductions is not just about making timely payments; it's about protecting your credit profile, investments, and financial reputation. With simple tools like SMS alerts, mobile banking, and lender portals, you can easily stay updated and take quick action if something seems off. Responsible tracking empowers you to stay in control of your LAS and avoid potential pitfalls.
How to track EMI deductions for your loan against securities?
Keeping track of EMI deductions for your Loan Against Securities (LAS) is essential to ensure timely repayments, protect your credit score, and avoid any disputes. Here are some effective ways to monitor your EMI payments:Check bank statements regularly
Go through your monthly bank statements to confirm that EMIs are being auto-debited on the scheduled dates. Look for transaction IDs and descriptions related to the loan account.
Enable SMS and email alerts
Opt-in for SMS and email notifications from your bank or lender. These alerts will notify you every time an EMI is deducted, giving you real-time updates.
Use net banking or mobile app
Log in to your bank's net banking portal or mobile app to view upcoming EMI schedules, past deductions, and outstanding loan amounts.
Access the lender’s loan management portal
Most NBFCs and banks offer dedicated loan servicing platforms where you can track EMI payments, download statements, and raise queries.
Download monthly loan statements
Download and review monthly loan account statements. These documents provide a detailed breakup of principal, interest, and remaining balance.
Cross-verify with payment schedules
Match the deducted EMI amount with your repayment schedule to ensure that the correct amount is being deducted and applied as intended.
Maintain a personal EMI tracker
Create a simple spreadsheet or use budgeting apps to log each EMI deduction, along with dates and amounts. This can help identify any missed or duplicate payments.
Set calendar reminders
Mark your EMI dates on a digital calendar to manually verify deductions around those dates, especially if you rely on multiple bank accounts.
Monitor your credit report periodically
Check your credit report every few months to ensure your EMI payments are being reported correctly. Any discrepancies should be addressed immediately.
Contact customer care for confirmation
If in doubt, call or email your lender’s customer support to confirm recent EMI deductions and get updated on the current loan balance.
Tracking EMI deductions ensures you stay on top of your loan and helps you act quickly if an issue like a loan EMI not deducted occurs. It’s a smart habit that safeguards your financial health.
Common issues in EMI deductions for loan against securities
Even with automated systems in place, EMI deductions for Loan Against Securities (LAS) can sometimes face disruptions. Here are some common issues borrowers may encounter:Insufficient account balance
One of the most frequent reasons for EMI failure is not maintaining enough funds in the linked bank account on the deduction date.
Banking technical glitches
Temporary issues with banking servers or the National Automated Clearing House (NACH) can delay or stop EMI deductions.
Incorrect mandate setup
Errors in setting up the auto-debit mandate—such as incorrect account details or mismatched signatures—can lead to EMI rejection.
Mandate expiry
Auto-debit mandates have a validity period. If not renewed or re-authorised, EMI deductions may fail after expiry.
Multiple linked accounts confusion
If you’ve changed your repayment account but haven’t updated it with the lender, EMIs may continue to get debited or fail entirely.
Public Holidays or non-banking days
EMI deduction scheduled on a bank holiday may get postponed, affecting your repayment history if not handled correctly.
Unnotified change in loan terms
Sometimes, changes in interest rates or repayment schedules are not clearly communicated, resulting in confusion over the EMI amount.
Duplicate or partial deductions
In rare cases, technical errors may cause either partial deduction or multiple deductions for the same EMI.
System delays in EMI confirmation
Even after a successful deduction, delays in system updates can lead to confusion or false alerts of non-payment.
Lack of communication from the lender
Not receiving timely alerts or statements can make it difficult to stay updated on EMI status.
Identifying and resolving these issues promptly is essential to maintain a clean loan record and avoid late fees or credit score impact.
Benefits of tracking EMI deductions regularly
Regularly tracking EMI deductions for your Loan Against Securities (LAS) helps ensure seamless loan repayment and avoids financial setbacks. Here are the key benefits of staying on top of your EMI schedule:Avoid missed payments
Monitoring your deductions ensures you never miss an EMI due to oversight or technical error, keeping your repayment track clean.
Protect your credit score
Timely EMI payments are reported to credit bureaus. By tracking regularly, you avoid errors that could negatively impact your credit rating.
Detect technical or mandate issues early
If there’s an issue like mandate failure or system delay, you’ll be able to spot it immediately and take corrective action.
Prevent penalties and late fees Missed or delayed payments often attract additional charges. Tracking helps you take steps in advance to avoid such overdue payment scenarios.
Better loan management
You gain clear visibility into your outstanding balance, upcoming dues, and payment history—allowing for better financial planning.
Option to pay in advance If you have surplus funds, tracking your EMI cycle helps you decide the right time to Pay in Advance and reduce your interest burden.
Quick dispute resolution
Regularly reviewing deductions means any discrepancies—like partial or duplicate EMIs—can be reported and resolved quickly.
Informed decisions for prepayment or closure
With accurate EMI tracking, you can plan for loan prepayment or closure more effectively and at the right time.
Keeps pledged securities safe
Regular payments ensure that your pledged securities are not at risk of liquidation due to default.
Improves financial discipline
Cultivating the habit of EMI tracking improves overall money management and keeps your financial goals on course.
Tracking your EMIs isn’t just a best practice—it’s a financial safeguard. It gives you control, ensures transparency, and helps avoid problems like overdue payment or missed deductions, ensuring a stress-free loan journey.
