Changing the bank account used for car loan Equated Monthly Instalments (EMIs) is a common request when a borrower switches jobs, closes a salary account, or prefers to manage repayments from a different bank. The process varies by lender, but most banks and non-banking financial companies in India allow a change of EMI debit account after verifying the new account details. Understanding the required steps, documents, and possible charges can help avoid missed payments and penalties.
Steps to Change Your EMI Bank Account
Follow these general steps when requesting a change. Your lender may have additional requirements.
- Contact your lender’s customer care or visit the nearest branch to request the account change form.
- Fill out the form with your existing loan account number, current EMI date, and new bank account details.
- Submit self-attested copies of your identity proof, address proof, and the new bank account’s cancelled cheque or passbook front page.
- Provide a signed authorisation or mandate allowing the lender to debit EMIs from the new account.
- Wait for confirmation. The lender will typically intimate you once the new account is registered and the next EMI is mapped to it.
- Monitor your new bank account on the next EMI date to ensure the debit was successful.
Documents Usually Required
Lenders commonly ask for the following:
- Duly filled account change request form
- Copy of PAN card or Aadhaar card
- Latest address proof such as Aadhaar, passport, or utility bill
- Cancelled cheque or front page of the passbook for the new bank account
- Loan account statement or sanction letter showing the existing EMI
Self-attestation is usually required, and some lenders may ask for original documents for branch verification.
Possible Charges and Timelines
Many lenders do not charge a fee simply to update the bank account for EMI debits. However, some may levy a nominal administrative or mandate registration charge. Since fees differ across banks and NBFCs, confirm the exact amount and processing timeline before submitting your request. Processing can take anywhere from a few working days to a couple of weeks depending on the lender’s internal workflow.
Decision Factors to Consider
Before changing the account, keep the following in mind:
- Ensure the new account maintains sufficient balance before each EMI due date.
- Do not close the old account until you receive written confirmation that the EMI has been successfully shifted.
- Check whether your lender requires a fresh National Automated Clearing House (NACH) mandate.
- Confirm the date on which the first EMI will be debited from the new account to avoid any gap in payment.
| Aspect | What to Verify |
|---|---|
| Processing fee | Ask your lender if any charge applies for updating the debit account. |
| Timeline | Confirm how many working days the change will take. |
| Mandate type | Find out if a new NACH or ECS mandate is required. |
| First debit date | Verify the exact date the new account will be debited. |
What to Do If an EMI Fails
If the EMI is not debited from the new account due to a delay in processing or insufficient funds, contact your lender immediately. A missed or bounced EMI may attract late payment charges and could affect your credit record. Making the payment through an alternative method, such as NEFT, RTGS, UPI, or a branch cheque, may help you avoid default while the account change is being completed.
Loan terms, charges, and documentation requirements vary by lender and are subject to change. Verify all details with your bank or NBFC and refer to your loan agreement before proceeding.