A system error at Bank of Baroda may have caused some home loan customers to pay more than their scheduled monthly EMI in March. According to several people aware of the issue, the bank mistakenly applied incorrect interest rates in certain accounts. As a result, some borrowers were charged higher EMIs, while in a few cases, customers were charged less interest than required.
Customers Face Extra Charges and Panic
Many affected customers said that extra amounts were deducted from their bank accounts without prior notice. In some cases, where the account balance was not enough to cover the higher EMI, customers were marked as overdue or delinquent. This created panic among borrowers as it also triggered calls from recovery agents.
Some customers also reported a drop in their credit scores due to these incorrect overdue markings, which added to their stress.
What Customers Should Do in Such Cases
1. Check Your Bank Statement
Review your EMI deduction and compare it with your loan schedule. Look for any extra charges.
2. Contact Bank Immediately
Visit your branch or contact customer care of Bank of Baroda and report the issue.
3. Raise a Written Complaint
Submit a complaint via email or grievance portal and keep proof.
4. Do Not Ignore Overdue Alerts
Act quickly to avoid credit score damage. Pay temporarily if required.
5. Check Your Credit Score
Ensure no wrong entries are reported due to bank error.
6. Escalate the Issue
If unresolved, complain to RBI Banking Ombudsman.
Bank Responds and Takes Action
A spokesperson of Bank of Baroda said that the issue was identified during a routine review. The bank confirmed that corrective steps have already been taken.
According to the bank:
- Customers who were charged extra have received refunds
- Customers who were charged less have paid the remaining amount
The bank also said that all adjustments were made as per the loan agreement terms and that such reviews are part of regular processes to maintain accuracy.
Customer Complaints and Real Cases
Some borrowers shared their experiences. A customer from Pune, Nishi Mrinal, said she had to pay ₹57,290 extra over her EMI of ₹98,953. She was warned that if she did not pay, her account would be marked overdue and reported to the credit bureau.
She also said that ₹3,998 was automatically deducted from her savings account without her knowledge, and the remaining amount was marked as overdue. To protect her credit score, she later paid the full amount.
A borrower from Kolkata faced a similar issue. Many customers said their EMI due date was March 4, and several complaints have also been posted on social media after they failed to get timely help from the bank.
This incident has raised concerns among customers about banking system errors and their impact on finances and credit scores. While the bank has taken corrective steps, affected customers are still facing stress due to unexpected deductions and reporting issues.
