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  1. Mughdha
  2. Finance, Insurance
  3. Wednesday, November 21 2012
My Loan is Approved in Icici bank. What is Advisable for Making up Repayment of Loan, through ECS, PDC or Debit Mandate. Any specific suggestions for the mode of repayment and any shortcomings of any kind basis your experience of this sector
Gagan Modi Accepted Answer
Hi -

Ideally it really does not make difference for choosing any kind of repayment mode as referred above, it all depends on user convenience.
- ECS - you only need to sign 2 copies for the bank and 5 security pdc - 3 cheques for (EMI*3), 1 for balance and 1 cancelled cheque
- Debit Mandate - you need to sign 1 copy and 4 security pdc - 3 cheques for (EMI*3), 1 for balance
- PDC - you need to issue entire cheque leaf equivalent to tenor of loan - 36 for 3 yrs and 60 for even 5 yrs

Well, sharing personal experience
- We have seen ECS - sometimes yes is been missed during the first month for clearance of EMI and shown the first EMI as bounced EMI (happens in 1-2% of cases, could be due to the error of originating or presenting bank - for late presentation or ops related issue)

- Debit Mandate - Ideal as both the originating bank and presenting bank is the same, in your case would be ICICI . However - do note that if you ever feel to stop debit mandate for payment of loan EMI - almost you will not be able to do so

- PDC - Only hassle is about filling the particulars for each cheque individually and signing it. Do you know as per RBI Mandate - not even a single cutting or over-writing is allowed on loan EMI Cheques. If there is even a slight over writing - the cheque will not be accepted by the bank and you will have to again issue a new cheque. The hassle is only about signing a set of 36 - 60 cheques and filling it without any over-writing.

  1. more than a month ago
  2. Finance, Insurance
  3. # 1
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