Loan Errors: Navigating a Financial Maze: Challenges Faced with Flipkart's EMI and IDFC First Bank. Are they scamming us?

Hello All!!

  1. On 8th October 2023, I made a purchase of an MSI Core i3 11th Gen laptop through Flipkart and opted for the “Flipkart Pay Later EMI” service with IDFC First Bank as the lending partner, which was loan 1. Additionally, on 11th October 2023, I purchased a TWS in EMI of 1750 for 3 months, making the total cost to be paid 4999 along with a loan processing fee of 116, which was loan 2.

  2. As per the terms of loan 1, I was supposed to pay a total amount of 26597 in 6 installments of 4749, along with a loan processing fee of 471. However, I decided to prepay the entire outstanding loan amount of loan 1 on 18th October 2023, with a foreclosure fee of 1063.88, resulting in a total payment of 27891.45 made to IDFC First Bank before the billing date of EMIs of 1 November 2023.

  3. If I had not opted for foreclosure of loan 1, then my total EMI would have been 7086 for the first month, which includes the EMIs & processing fees of both loan 1 and loan 2 and 6499 for the subsequent months. Once the EMIs of loan 2 were completed, I would have had to pay 4749. However, since I have already paid the entire loan amount of loan 1, I did not need to pay anything for loan 1.

  4. Therefore, my current EMI should be 1816 for the 1st month, which includes only the EMI of loan 2 and the loan processing fee of 116, and 1750 for the subsequent months.

  5. However, I am facing an issue where the EMI amount of 8151.88 appeared in my statement for November 2023, generated on 2nd November 2023, despite the prepayment and the issuance of a No Dues Certificate by IDFC First Bank confirming the clearance of all dues of loan 1. They also added the foreclosure amount to my statement, which I had already paid.

  6. This discrepancy is causing confusion and inconvenience as the EMI amount should not be reflected in my statement after the full prepayment. I am concerned that I might be charged for a payment I have already settled.

  7. Additionally, my Pay Later account has been suspended by Flipkart due to non-payment, as stated in an SMS from Flipkart, not the bank.

  8. However, I have made the EMI payment for the loan through the bank’s app, along with the loan processing fees for both accounts.

  9. On 2 November, I reached out to the customer support teams of both Flipkart and IDFC First Bank. The bank informed me that they have closed the loan account on their end and provided me with a No Dues Certificate. However, when I contacted Flipkart, they advised me to contact the bank, even though I had already done so and the bank had cleared their name from the issue this goes on at least 10 times in 1 day. The problem lies with Flipkart, as they have not processed the amount from their side and it still appears on my statement. I have already gone through two stages of complaint, first with customer care and then with the grievance officer, providing all the necessary evidence. Unfortunately, no resolution has been reached thus far.

  10. Now, I am considering escalating my complaint to the RBI (Reserve Bank of India) via the RBI Ombudsman. I am requesting the RBI to rectify this error and provide compensation for the mental distress I have experienced.

  11. Please advise me on the next steps I should take, or if you have any other suggestions, kindly let me know.

1 Like

Welcome to the community @umar :v:t2:
lipkart’s PayLater and PayLater EMI features tend to confuse everyone. Forget the EMI option, just do a transaction via normal PayLater and see the transactions history, confusion is almost guaranteed for anyone.

The most effective ‘solution’ is to tweet about the problem while tagging both Flipkart and IDFC on X platform. This typically results in a faster resolution, often prompting a callback. I encountered an issue with my PayLater account, and after tweeting my problem, I received a resolution: my account was closed, and I obtained a NOC within just 3 days.


I’m thinking of moving to complain to RBI, although if I posted my concern on X, I’m damn sure my problem will be solved, but I don’t want that anyone else should go through this problem & the topmost regulatory agency should about any discrepancies happening within these companies. If we don’t take proper legal actions against these companies they may continue to exploit their customers or not update their SOPs & systems or internal workings.