Since regular payment of premiums is critical for any loan repayment, subscribing to ECS will ensure that there are no defaults, therefore eliminating any possibility of lapsation. It is a hassle-free method that does away with all concerns on your part to keep a track of PMII/MI payments.

It is also convenient as it involves no physical transaction nor does it require you to go to any bank or office. You can rest assured of the safety of your money while using this facility as ECS is tightly regulated by the RBI.

Also, subscribing to ECS for Pre Monthly Interest Installment / Monthly Installment payment is pocket friendly as there is no additional charge levied either by the bank or the lender for availing this facility.

How does Ecs facility will avail:-

To avail the facility of paying Pre-Monthly Installment Interest (PMII) / Monthly Installment (MI) through ECS,

By doing so, You authorise the bank to deduct the Monthly MI / PMII on the due date. Once the ECS facility is activated and the MI/ PMII amount starts getting deducted from account holder's account.

ECS facility is currently offered in select cities which vary for each borrower/s. Typically, most of the large- and mini-metros and tier-II cities are covered.

You need to inform your bank and provide a mandate to debit your PMII/ MI through the bank.

IThe mandate contains details of your bank branch details and account particulars along with the maximum amount form making payments through Debit clearing, periodicity of payment.

The ECS user can set the maximum amount one can debit from the account, specify the purpose of debit, as well as set a validity period for every mandate given.

Through ECS mandate Customer authorise the Bank (institution) for making the payments.

In case you foreclose / pre-close the education loan, by sending written application to the lender as well as to you bank to stop payment through ECS/ cancelled the ECS Mandate.

When you deploy the ECS payment mechanism, this also leads to improvement in efficacy levels of lenders firms by reducing administrative work and cost, and enables them to provide superior service. Planning and automating premium payment through this route is indeed an ideal solution for today's busy consumers.

Dishonour of Electronic Fund Transfer (EFT) due to insufficiency of fund in an account, punishable with imprisonment (more than 2 years) offence or with fine (up to double amount) or both, on similar conditions as in case of Dishonour of cheques under Negotiable Instrument Act 1881.

Via ECS, you have the option of swapping - whereby we can directly debit the account for PMII/MI amounts on due dates, from another bank account that you authorise us to debit.

The Reserve Bank of India has deregulated the charges to be levied by sponsor banks from institutions.

Destination bank branches have been directed to afford ECS credit free of charge to the beneficiary account holders.

So, it costs you nothing.

Yes. It is left to the choice of the individual customer and the ECS user to decide these aspects. The mandate can contain a ceiling on the maximum amount of debit, specify the purpose of debit and validity period of the mandate.

Yes. It is left to the choice of the individual customer and the ECS user to decide these aspects. The mandate can contain a ceiling on the maximum amount of debit, specify the purpose of debit and validity period of the mandate.

Being reported to a credit collection agency and credit bureau Paying collection costs, in addition to the outstanding loan amount Becoming ineligible for further borrowing The lender can take legal action Cheque/ ECS bounces, it is a criminal offence in India. Therefore under the Negotiable Instruments Act, 1881/ The Payment and Settlement Act 2007, the person who had issued the bounced cheque/ ECS is punishable with imprisonment for a term which may extend to two years, or with a fine which may extend to twice the amount of the cheque, or with both. The lender shall also file an additional civil suit for recovery.

No, you need to give a separate ECS mandate form for each bank account that you wish to use.

As explained in the ECS (Debit Clearing) process above, your account generally gets debited on the eleventh working day from the start of the ECS cycle. We strongly request you to keep your account funded on and after the 'pay on' date.

You can remit the defaulted payment through cheque/ DD or Electronic Fund Transfer mode i.e. RTGS & NEFT.