If you’re about to take a home loan, you may be considering what’s the best method to make repayments – Cheques or ECS? In that case, let us help you decide. 

Today, many lenders offer flexi-EMI plans to make home loan repayments easier for borrowers. So you might think once you decide on your EMI plan, you can get straight to paying the EMIs. Truth is, there’s one more thing you need to do before you finish setting up your EMI payments. And that is to decide the mode of home loan EMI payment.

Most lenders allow you to pay loan EMIs via two modes:

  • The tried and tested method of post-dated cheques
  • The new-age method of ECS (Electronic Clearing Service). 

So which one should you choose? Let’s explore.

Home EMI Payments: Cheques vs ECS 

1. Cheque

This is the traditional method of making home loan EMI payments. Here, all you need to do is sign and mail a cheque to your lender at the end of each month to pay your EMI. You just need to verify that your account is well-funded before signing and sending the cheque. This is done to ensure your home EMI payment can be processed without any hassles. 

Features of cheques

  • Cheques are much safer than cash transactions in places that do not have access to electronic payment modes.
  • Cheques are traceable.
  • Cheques above Rs. 50,000 get even more protection from fraud because of the extra checks in the newly introduced Positive Pay system.

2. Electronic clearing service

This is an electronic way of making payment/receipt for repeat and recurring transactions directly from your bank account. Here, your lender will contact your bank and withdraw the monthly EMI payment from your account. To allow home loan EMI payments, you only need to fill out a consent form in advance.

Features of ECS 

  • You never have to worry about funds reaching your lender’s account. Why? Because ECS occurs through a secure online server. This reduces the chances of fraud too.
  • You don’t have to physically visit a lender to make a loan repayment.
  • Since ECS payments are automated, rest assured you’ll never miss an EMI payment.

To summarise 

If you have access to ECS, use it to make your monthly loan repayments more convenient. There’s no better way of automating your repayments. If not, post-dated cheques can make a secure alternative. 


Now that you know all about cheques vs ECS as repayment modes, you can make a better decision when it comes to picking a side. But if you’re looking to apply for a home loan, then Tata Capital can help you out. Visit our website now to learn more about our housing loans.

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