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How to Pay SBI Loan EMI Online

SBI Loan Re-Payment or Pre-payment using SBI Internet Banking through NEFT transfer

This tutorial will guide you how you can repay your SBI loan online easily with Internet Banking through online NEFT Transfer. This is currently applicable only if you have an Online SBI Account.

Paying SBI Loan Online with Online SBI

Imagine a situation when you are somewhere outside of your hometown. Or Else you are busy somewhere at someplace due to work, for which you aren’t able to go to the branch every time to pay your EMI; in case if you have missed it or you want to pre-pay some amount.

We live in a busy world, it’s not always possible to visit your bank branch to carry out transactions ; or even just to get any information.
Currently, India is slowly moving towards digitization, and gradually even our banks have started to make banking digitalized.

So if you are experiencing such scenario from above, thankfully SBI has provided its loan borrowers with a facility; to pay EMI if you have missed it or if you want to pre-pay some amount.

There’s a method other than auto debit from salary or manual payment, which can be just carried out with ease with SBI’s Internet Banking Facility:

The method is pre-paying the loan by adding your LOAN account as third-party account and then doing a normal NEFT transfer.

In short, you will be linking your loan account to your saving’s bank account. Then, you can use NEFT through internet banking for paying loan amount conveniently anytime, anywhere.

Step 1: Link your loan account to your SBI Bank account.

One big reason, why you should connect your loan account for prepaying your home loan or another kind of loans is because; at times we get some spare cash in our life through bonus or some other reason, but because prepayment needs some effort and physically going to bank takes away our excitement and all that money finds its way to some other expenses which could have been avoided.

This has been confirmed via official sources and even other SBI customers; that a LOAN account can be added to a third-party account in your online banking account and you can do a NEFT transfer to your loan account. This is a simple and powerful way of pre-paying your home loan or any other kind of loan because it’s at your fingertips and you don’t have to delay the decision of prepaying your loan just because of inconvenience caused by visiting the bank.

Steps of adding your Loan Account to your Online Banking account

1. Make sure you have internet banking enabled and the branch where you hold the loan account also accepts the online payments (mostly this is always true).

2. Just like you add a third-party account, in the same manner, add your loan account as third-party account so that you can make the NEFT payment later. Once the account gets added, you should be able to see it as one of the added accounts.

Home loan payment online using NEFT

3. Once the account gets added, you can then make the payments to your loan account, it would be considered as your pre-payment.

Step 2. Now you can pay it via NEFT.

 Some point on home loan prepayment

  • Note that this home loan prepayment online through NEFT should be possible for all kind of loans, not the just home loan.
  • Why only pre-payment, you can also pay your regular EMI’s using online options instead of post-dated cheques. So ask your bank to allow/enable this option.
  • It might happen that this does not work in some banks. But we have seen 3 confirmations from different readers for 3 different banks, so mostly this should work on all the banks.
  • If you have a bank account and loan account in the same bank, it should be a more easy process of just linking the accounts, ask your bank on this to guide you.

So If you have a home loan, you should definitely explore the idea of connecting your loan account with your bank account so that whenever you have some spare amount, you can quickly do home loan pre-payment the loan by a click of the button, otherwise, that “extra” cash can evaporate very soon. Are you going to do this?

Try it out and let us know in comments section if home loan prepayment worked for you through NEFT.

Other Updates, Queries, More Information-> Important

For SBI Home Loan Maxigain Customers:

Even if you pay to your Home loan account as NEFT it will park your money in MaxiGain Account(loan account) because MaxiGain Loan account is OverDraft account, payment .hence it will deposit in your account but not payment.You can see your principal amount will be reduced by your payment but you can not claim this amount in 80C of income tax as this amount will be treated as Parked amount but not pre-part payment.

Hope this will help with other maxigain holders.

  • there is a Minimum amount one can Pay as Pre-Payment for a Home loan or another loan? Will Bank accept if I just Pay Rs.100 Today?

    Answer: Most of the banks put a limit of 3X of your EMI as the minimum prepayment. Check with your bank if other than SBI.

  • There are two situation occurs when you pre-pay some amount towards EMI.

    1) Bank will not deduct EMI or will deduct lower EMI considering your pre-payment as a part EMI (Default option)

    2) Bank will deduct EMI irrespective of the amount you paid as an extra payment. (You have to instruct bank to do this)

  • Scenario – 1If you are doing some extra payment other than EMI then SBI by default won’t deduct the EMI. This has happened to one of my friends where he paid 50% of the loan amount as a prepayment and now the bank is not deducting any EMI from his account from last 4 years (But accumulating the interest in loan account).In my opinion, this is a bad option. Because this option actually does not help you to shorten the duration.You have to explicitly ask SBI to deduct your EMI through ECS irrespective of your pre-payment.
  • Scenario – 2This is what I am doing with my SBI Home Loan. I am paying a little amount to say 3000 to 5000 per month over and above the EMI and it is not in multiple of my EMI. I am transferring this amount through NEFT. It goes towards principal and I can check it online in my loan account.

    Now here we may have a doubt. Whether the amount I am paying extra every month goes to principal and actually helping me to reduce my tenure?
    The answer is YES.The amount which I am paying extra is getting reflected in the loan statement which bank is giving at the end of the fiscal year. There I can see my ‘extra’ amount paid in ‘Principal amount repaid’. So it is confirmedPS: I have never informed SBI about my extra payment every month. I just informed them to deduct my EMI irrespective of my extra payment.Hope this may help someone to reduce his/her home loan duration.

If you have any queries on the steps or in this tutorial, just ask us in the comments below.

59 thoughts on “How to Pay SBI Loan EMI Online

  1. Hi,
    Thanks for the information. i just had one scenario in one mind.

    suppose my emi date is on 10th of every month (say emi of 14000 per month), on 4th of one month i manually transfer 15k to the loan account. now on 10th again my emi will be deducted? what can i do to avoid this, by mistake i transfered it manually. Please help at the earliest.

    • Sorry for the wait, Thanks for reaching out. As you said, your EMI Date is on 10th of every month, and you did a manual transfer of 15k to your loan account, that’s good to know.

      But The thing is it will be not be deducted again as when you were paying back to your loan account, you were paying against the EMI and not the total loan and according to this article if you read up in the last clauses, There are two situation occurs when you pre-pay some amount towards EMI. Please go through Scenario 1 and you will understand that you won’t have to pay again, as this is the default option, however, please confirm it with your loan branch once.

      We advise you to do so as quickly as possible.

  2. Today ( 1/08/16) ,I tried to make online payment of housing loan through e-corner of sbi located at m.g.Marg gangtok without using ATM card.
    I am sorry to say that despite several attempt by your staff deputed at e- corner , it was not accepted by the machine.
    As such I reported to it to the sbi office located on same building , and ( manager)he came down to confirm it from the staff . Staff informed him that machine didnot accept thr cash.
    Finally manager told me that since this is loan account ,you cannot make payment from here.

    Please let me know ,what is the use of e- corner . is it not possible to make online payment of housing loan from e- corner.

    • With E-corner (You will find multiple self-service facilities like ATM, CDM, KIOSK etc. at one place). No, you can’t pay for loan accounts with eCorners, rather like CDM ( Cash Deposit Machine ) you can use it to deposit cash in your account or in accounts of others. If you wish to pay for your loan account, you can do so via internet banking, by link your loan account to your savings account.

  3. Hi, I wish to prepay my car loan outstanding amount in full. I am presently traveling out of India, can I make a NEFT payment through nre account of other bank or can a relative drop a cheque at the branch from where I had taken the loan. How do I confirm the principal amount due. Kindly advice, thank you

    • You can ask the helpline number to look up for you.

      If you have the details of the Branch where you have taken the loan, ask them, they might clear your queries as if you are outside India.

      Usually you could pay via net banking from your own account.

      But when it comes to NRI account of Other Bank, I doubt that’s feasible.

      However I won’t suggest you to do anything without confirming with SBI officials first.

      Repaying loan is a sensitive matter so be careful when choosing the mode of payment.

      Hence, I advice you to contact your branch before taking any action.

  4. Hi,

    What will be the payee account name for NEFT transaction while adding payee, I been calling SBI for the last 2 days and none are able to help 🙁

  5. Hi i have taken the home loan last month and the bank informed me that regarding first emi i have to pay through NEFT. in my online account page i have identified two new account number is added. one is OD and another one is loan account. to which account i have to pay the emi of my home loan.

  6. My EMI date is 15 of each month for my SBI Max Gain Home loan. EMI si 27400. It is deducted through an ECS from my ICICI Bank account. This month, I have trasnferred 1 Lakh rupees to my SBI MaX Gain Loan Account on 4th January. Now till today – 17th Januray, they haven’t deducted my regular EMI from my ICICI account through ECS. What could be the reson ?
    When I see my SBI Home Loan A/c online, I see that they have reduced the “book balance” from -28L to -27L. And increased “Available balance” from 0.9L to 1.9 L.
    Please help me understand.

    • It good to know that you are attentive regarding payments related to your loan. According to what you say, it might have been that they have adjusted the deduction from the amount you had transferred.

      This is the most probable scenario, however, it is also possible that sometimes due to technical problems or some other problems the deduction was not done. Hence we request you to reach out to your Loan Manager and clarify the information regarding this.

      You don’t need to worry, but please do clarify this to your loan manager so that there won’t be any problems in future.

  7. Hi,
    I have adoubt. How to repay the principal of home loan if I’m having a maxigain loan account. If I transfer thru NEFT to my loan account, then it will be parked as a OD.

  8. Hi,
    Could you guys please let me know if there is a way to pay my SBI Home Loan through Credit Card ??? I want to do it by Credit Card only. Other ways I know. Please reply soon. This is urgent.

    • The only way by which you can pay your SBI Home Loan through your credit card is by withdrawing Cash from your Credit Card and paying it through NEFT (online banking) or check against your home loan, you can’t directly pay your home loan from your sbi credit card. Though we don’t recommend that!

      • thanks Ashish that I knew already. But that is pathetic and bullshit because in this world of technology there is no billdesk/payment gateway to pay your loans also. That is why private banks are booming as they provide lot of facility. SBI sucks.

        • Not all private bank do provide such service. Well, I do agree with the fact that SBI can provide such services like other channels to pay your Loans. However, there are just so many policies and loose ends to keep in check. That’s why Indian Banks lack approach tech slowly. Even if they implement the bleeding edge tech and provide service, security, and internal policies need to be revised thoroughly.

          Banks usually may allow customers pay for small loans through credit cards, like Bike loans or any other kind of loan up to a small amount (card transfer included).

          However large loans like home loans involve real and huge amount. Banks are willing to accept check, debit, or transfer against your loans with keeping in mind that there is a flow of money; whereas when you would like to use your credit card, not only you are increasing your credit burden and relying on credit more, but you are making using of virtual money that isn’t yours right that time, it’s just you are borrowing more from the system without having any actual money to pay your loans.

          That creates a scarcity of credit in the system and doesn’t promote the use of actual money.

          You may see that as a benefit, but on the long run, it may cause you serious credit problems.

          This is something that economist, RBI, and banks decide up. There is always money involved somewhere.

          Like you said there is no billdesk/payment gateway to pay your loans, well for small time credit application like credit cards, billdesk is available, but that isn’t viable for larger loans, are you willing to pay more for availing such facility. Payment gateways aren’t part of the bank, and they are a whole other entirely, and they charge for every processed transaction that you would make.

          Take example IRCTC, when you book a railway ticket you are charged additionally for using a payment gateway.

          That way would you like to pay even a little sum extra for having the payment gateway facilitated to you, well you might agree but others wouldn’t.

          Hope you get it, but feel free to comment if you have any thoughts about all these. 🙂

          • My god!!! You could write a book… i just wanted to pay this month’s EMI along with some additional charges for revising my Home Loan Interest Rate and as I am switching jobs I do not have enough cash this month… thats it… It isn’t a huge amount… maybe they could have a POS machine at the branch where my loan account is…. I read on this forum about e-corner… I don’t know what that is exactly but something like that could help in such situations… Anyways I will withdraw money from my credit card which will also be virtual money eventually as I will be taking “Credit” via my credit card.

            Thank You Very Much

          • Apologies! 😀 But that true for situations like that credit cards are really useful. But it’s the RBI and Banks who have not allowed the customers or borrowers to pay through such channels.

            Wish they did accept loan payments trough POS machines, it could have helped those who are in tough situations and can’t pay with cash. What you said is a valid reasoning, but it’s unlikely for banks to follow up with this.

            Yes, when you withdraw From your CC you are taking credit, that’s why it comes with so many charges.

            Sadly though our govt is pushing things hard for a digital revolution, sectors like a bank and other service providers are yet to implement a lot of things.

            However, I would like to add that if in future such facility is provided by SBI, we will ASAP update it on our blog about it.


    • Link your Car loan account to your sbi account and have internet banking facility. Then you can pay your loan anytime anywhere via NEFT facility.
      You can also prepay the loan to save on interest.

  9. Hello ,

    My car loan account is active and i have paid all my EMI’s , still some 3k is outstanding it seems, i called SBI brach several times and no on responds . can i pay the outstanding car loan from CITI bank NEFT ?

    • If you are saying that you have paid all your EMI’s, we request you to physically contact the branch and the loan department to find out any prior details. Post confirmation and if there is any due really left, then only we advise you to pay the loan, otherwise, don’t.

      You can also mail for getting the details from the customer support, however calling the loan manager of the branch from where you took the loan will be much faster.


  10. Hi,
    My loan emi is deducted from my salary account every month but if i want to pay extra amount, whom i have to contact? Is it can be done by any other online option?

    • You can pay any amount of the loan with NEFT if it’s linked to you SBI account if it isn’t linked you can link by contacting your branch. You can also pay extra amount via cash or check option.
      However, the only online option is you can pay it via NEFT.

  11. I want to pay to few amount to my loan account of SBI education loan. I want to pay through other bank’s NEFT/IMPS but directly to loan account not using my normal SBI account.

    I have tried using Union Bank, I added my loan account as beneficiary to union bank but I am not able to transfer to my loan account of SBI education loan.
    Can it be possible to transfer few amount through NEFT/IMPS from other bank (I am not saying about EMI) ?
    can u give some suggestion for paying amount through other bank(online or any other)?

    • You can pay through NEFT but not IMPS, as IMPS is not supported. Well, we are yet to confirm that you can pay from other bank or not. We have to wait for an official confirmation and information about the exact procedure if it’s allowed.


      • So, you are not sure it’s allowed or not?
        can u give some suggestion for paying amount through other bank(online or any other)?

        • Yes, we are not sure, as most of the SBI customer have an sbi bank account and they link it to their loan account, by that they use any funds in that account to directly any amount using NEFT as a pre available option.

          Note: After linking loan account to your SBI account, you don’t have a manually add a beneficiary, like normally we ought to do. So the fastest and easiest way for paying online through NEFT is by linking your loan account to your sbi account and paying with it.

          You can issue a check, but right now paying through online means by other banks seems not possible.

          If it comes to our knowledge and we get the know the exact procedure for paying through NEFT from other banks, would post it on our site.


  12. I had paid extra amount (more than my emi) to my home loan account about a month back. This month, my emi date was 5th and I missed it somehow. Will this be considered as a non-payment of emi or will they just deduct it from the extra amount i payed last month?

    • Hi Shruti, its good to know that you paid an extra amount, that helps in reducing the principal amount to be paid back and save on interest.

      Let me provide you a straight answer.
      The fact that you missed the payment of EMI, will be considered as a non-payment.
      They money won’t be deducted from the extra payment you did.
      Because that will be adjusted against the total money you have to pay back.

      However, you can ask your loan manager more about this and see that if he can help you regarding this matter. Because you did pay early, it is possible to get some help regarding this matter.


  13. I missed my EMI due to shortage of funds for few hours today and SBI promptly deducted the penalty without any intimation. Is there anyway for me to repay EMI for this month online and the tag of EMI defaulter?

    • Sad to say, No there isn’t anyway.

      Let me give you a brief explanation regarding this.
      When you set monthly auto deduction in your account your account; Every month payment collection is run from SBI, which is Automated.

      You can’t pay the EMI Manually. Once you have missed the EMI Deduction, you ought to be listed as a defaulter as knowingly you are already made aware and have signed an agreement that you will keep your account in good standing and with enough funds so that EMI is deducted successfully.

      When you fail to comply with that you will be penalized and regarded as a defaulter.

      However, before the payment or collection run (EMI collection cycle ) you can choose to pre-pay some amount to get a leave for few months.

      In this case, sad to say you have defaulted and you will be penalized and tagged as a defaulter.

      However this also is from cases to case basis, what you can do now is approach your loan manager and discuss on this matter. If it’s possible he can waive the penalty, but that does depend on case to case basis.

  14. Hi Ashish, So this month EMI they will deduct next month? or what should I do know to make my record clean? I have the money now to pay…

    • Please approach the bank as soon as possible tomorrow and talk with your loan manager, it might be that you don’t have to pay any fine, but that depends on the situation and policies.


      • Ashish, we have taken a car loan in name of my wife from sbi.
        Please let me know if bank will accept the cheque from husband’s single holding account

  15. HI Ashish,

    I have taken a Car Loan from SBI and my EMI is debit from my HDFC salary account.
    I have missed my EMI this month due to shortage of Fund in my HDFC account.

    Is it possible to pay the missed EMI along with interest though my non SBI account via NEFT.

    how to know how is the interest?

    I am far away from my SBI Car loan account branch? what are suitable steps I can take now.

    please Help me.. thanks in advance

    • Sorry for the delay. As per your query that you mentioned.

      You missed the EMI due shortage of funds in your HDFC Salary account.

      Due to the fact that you missed the EMI payment it will be reflected in your CIBIL Report, however you can contact any nearby SBI Branch and talk to the loan department for any possible actions by your side, like paying the missed EMI with any fines, however this depends on several factors and as every case and borrower portfolio is different you have to get it discussed first.

      So I suggest you, visit a nearby SBI branch and contact the loan department there in regards to your loan account.

      Plus you can also reach your loan account manager of your original branch through phone too.


  16. Hello sir,
    I have been taken a personal loan from sbi& Another personal loan from an employees’ co-operative society. My ECSdate for both loan is first of every month &it is from my salary account. Now i am in leave with out allowance for two months for an ayurvefictreatment. So I missed the ecs date for two months. Unfortunately i am not in a financial condition to clear the due manually… Sir may i know… Will SBI charge all these four due ecs along with the normal ecs in next month?If yes, can i submit any application to avoid charging all these ecs together in the concerned sbi branch..sir, please give me valuable direction to solve this situation..

  17. Such a great post! Thank you 🙂

    Could you please help me with this query – I have a SBH car loan and bank accounts only in ICICI, HDFC and Canara.. Can I pay from these banks by adding loan account as a beneficiary and transferring through NEFT?

  18. Hi i have 2 queries
    1) how do i credit my house loan account from other bank account.
    2) by my SBI online house loan account , how do i pay the emi by using other bank account

  19. Hi Ashish, In my SBI Home Loan Account – despite paying up the EMI every month manually – the interest amount is calculated and debited – is that usual.

    Secondly, If I need to pre-pay a significant amount – shld I NEFT or reach out to the Branch to do the same.

    Please suggest! Thanks!!

    • Greetings Sachin! Yes, that’s quite normal, Usually, every EMI that you have has a fixed amount and an interest amount debited from that fixed amount.

      If you wish to pre-pay a significant amount, first link your SBI Loan account to your savings bank account, so that it would come up in Online SBI, then reach out to the branch before your first transaction to get any specific details and fees or procedure according to the type of ur loan.

      Then make the first payment through NEFT, and afterward, you can pay any additional amount through NEFT to lower the amount of your loan.


  20. HI Ashish, Hope you’re well… My friend borrowed some amount last month for his personal exp., last day he ask me to return the amount by transfer using his federal bank account. Then
    I given my home SBI home loan account & he did transfer using NEFT by his bank account to settle interest with some additional amount.
    till now i didn’t get any credit to my SBI home loan., Please advise me is there any problem?? or will credit??

    • Greetings, You can pay Car Loan EMI with check and cash, as you don’t have an SBI savings account. If you had or create an SBI Account its easy to do an online transaction from you SB account to your loan account.

  21. Hi Ashish,

    I have been using the online sbi. Recently(1month) we have opened a loan account with sbi, but the same loan account statement is not visble, when i log in. Please help.


    • Hi, Pradeep.

      You are requested to go to your loan branch and ask them to link it with your savings account properly.

      Also please know that there’s a new version of Online SBI available (interface update). You can try in that and look for the statement there.


  22. Hey Ashish,

    I have to start paying the EMI of my education loan which I have taken from SBI. However, my salary account is of HDFC. Could you please explain me the easiest way to link these accounts for automatic/manualEMI deductions every month.

    Will be really helpful if you can reply early as I am completely clueless regarding this.

    Thanks ,

  23. HI Ashish,
    can i transferred amount directly from my ICICI saving account to SBI loan account instead to SBI saving account and how much amount per day i can deposit into SBI loan account.


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