There is no single bounce-charge amount for every lender
The amount and description can vary by lender, bank, loan agreement and the reason for non-payment. Do not rely on a generic online range as the amount you personally owe. Ask for an itemised statement and the relevant term in your loan documents.
What to check on your statement
- Bank return or mandate-related charge, if any.
- Lender charge for the failed instalment, if provided for in the agreement.
- The overdue EMI itself.
- Contractual interest that may apply to the overdue amount.
- Any penal charge, its reason and the disclosed amount.
These are not necessarily all charged in every case. Ask the lender to explain duplicate or unclear entries.
What RBI guidance says
RBI's Fair Lending Practice framework says penal charges for non-compliance with material loan terms must be reasonable and disclosed. They must not be levied as penal interest added to the lending rate, and penal charges cannot be capitalised to compute further interest on those charges. This does not mean every ordinary bank fee or contractual interest amount is automatically prohibited; review the specific entry and agreement.
How to dispute a charge
- Download the loan statement and relevant KFS/loan agreement.
- Highlight the entry, date and amount you question.
- Attach the bank return message or proof of timely funds if relevant.
- Raise a written complaint through the lender's official grievance channel.
- Ask for the policy clause and calculation.
- Keep the complaint reference and response.
- If unresolved, follow the applicable RBI complaint/escalation route after first approaching the regulated entity.
Example
If an EMI of ₹10,000 bounced, do not assume the settlement amount is exactly ₹10,000—or accept a vague extra amount without an explanation. Request the current amount due in writing and pay using a verified channel.
FAQs
Can a lender charge penal interest?
RBI's penal-charge framework says penal charges should not be imposed as an additional penal rate of interest. Regular contractual/overdue interest treatment can still depend on the loan terms and applicable rules.
Are all charges refundable if I complain?
No. Refund depends on whether the charge was incorrect, undisclosed or otherwise not permitted.
Where should I start?
Start with the lender's statement, KFS and grievance process. Avoid sharing account credentials with third parties promising to reverse charges.
Next step
See Missed EMI Charges: What RBI Rules Mean, the Personal Loan page, and EMI calculator.
Official source: RBI FAQ on penal charges.