Why was I charged even after my loan had been repaid?

It can be confusing and frustrating to see a debit alert after you’ve already repaid your loan. However, this can happen due to the way payment systems are scheduled and processed.

Here’s what happens:

In most cases, this occurs because a direct debit instruction was already sent to your bank before your loan repayment was fully processed or confirmed. If you repaid your loan around the same time a scheduled debit was initiated, the system might still attempt to charge your account as originally planned.

This is especially common when:

• You make a manual repayment close to your due date.
• A card or direct debit was previously set up for automatic repayments.
• The system had already triggered the debit process before your repayment reflected.

Read further: Payments with Debit Cards

What happens to the extra amount debited?

There’s no need to worry. If an extra amount is debited after your loan has been cleared, the money will not be lost. It is:

• Automatically credited to your wallet or loan account within the app.
• Available for use or withdrawal, depending on the platform’s policies.

This ensures that you are not charged more than necessary, and any duplicate payment is returned.

What should you do?

• Check your loan status in the app to confirm it shows as “Repaid” or “Closed.”
• Verify your wallet balance, the extra charge should be reflected there.
• If you don’t see a refund within 24–48 hours, contact customer support at support@lendsqr.com for quick resolution.

Also read: What investors want to see before they fund your loan startup