How to avoid penalty on your home loan emi when you change your savings bank account

We cannot think of repaying a home loan without Equated Monthly Instalments (EMIs). By depositing the required sum every month, EMIs ensure that the loan repayment is regular, systematic and timely. It is done in two ways: through post-dated cheques (pdcs) and electronic clearing system (ECS). Let us consider the first method here.

Anuj has taken a housing loan of Rs 11 lakh for 15 years, on which he is paying an EMI of Rs 10,500. Like other banks, his bank too asks for the next 12 months’ post-dated cheques from borrowers in advance at the start of the financial year, so Anuj has already issued the pdcs for the next several months. But he has to change his bank account mid-way due to some reason, and this has made his pdcs void. Now, Anuj wants to replace these cheques as early as possible so as to avoid any cheque bounce charges and save from defaulting on his payments.

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