Bank of Baroda Faces Technical Glitch Affecting Home Loan EMIs

A technical glitch at Bank of Baroda has caused some customers to face unexpected increases in their home loan EMIs, negatively impacting their credit scores. The bank has acknowledged the issue and is processing refunds for affected borrowers. Customers are advised to review their loan statements carefully and report any discrepancies to the bank. This article explores the bank's response and provides guidance for customers on how to handle the situation effectively.

By Narendra Chaudhary Mar 24, 2026, 16:34 IST

Technical Issues Cause EMI Confusion

A recent technical malfunction at Bank of Baroda has resulted in some customers experiencing unexpected increases in their home loan equated monthly installments (EMIs) for March. This error not only led to higher charges but also negatively impacted the credit scores of affected borrowers. The bank acknowledged that an incorrect interest rate was applied, resulting in deductions that exceeded the scheduled EMI amounts. However, a representative from the bank confirmed that corrective actions have been implemented, and refunds have been initiated for those impacted.

Customers who faced inflated EMIs were pursued by private recovery agents, further escalating their distress as they noticed a decline in their credit scores. In certain instances, some borrowers had lower EMIs deducted due to the same technical issue, prompting the bank to recover the discrepancies.

Bank's Response to the Situation

What Bank of Baroda Stated

A spokesperson for the bank, as reported by a financial news outlet, explained that during a routine audit, it was discovered that a small number of accounts had been charged an incorrect interest rate. Refunds have been processed for those who were overcharged, while the bank has also rectified the accounts where customers were charged less than the agreed amount. Adjustments were made in accordance with the loan terms accepted by the customers.

Home loans represent nearly half of Bank of Baroda's retail lending and account for about 11% of its total loan portfolio. The bank's recent financial results indicate that its home loan portfolio has reached Rs 1.44 lakh crore, reflecting a year-on-year growth of 16%, while the overall retail loan portfolio stands at Rs 2.86 lakh crore.

Advice for Affected Customers

Steps for Customers to Take

Banking experts recommend that customers affected by this issue should first examine their loan statements and EMI deductions meticulously. It is essential for borrowers to ensure that the deducted amounts align with the agreed EMIs and to look for any unusual changes in their outstanding balances or interest rates. Customers should formally report any discrepancies to the bank through official channels, including in-person visits, customer service, or online complaint portals. Documenting complaints is vital as it creates a record of the issue and triggers the bank's resolution process.

Additionally, monitoring credit reports for inaccuracies is crucial, as errors in EMI payments or loan statuses can adversely affect credit scores if misreported. If discrepancies are identified, customers should submit correction requests to credit bureaus, along with supporting documentation. Keeping thorough records of overpayments, bank statements, complaint acknowledgments, and all correspondence with the bank can be invaluable when seeking refunds or resolving disputes.