Suppose there is a balance amount to be paid by the customer. In that case, the remaining EMIs will be re-calculated basis the new principal amount, which is the Original amount, the refunded amount. In order to close the loan, the customer has to pay the pending amount and only then it would be complete closure. However, this is a very rare case scenario. Refer to the following examples:
A customer purchases 2 products - Product A and Product B. After paying a few EMIs, the customer decides to cancel the complete order. In this case, the customer needs to pay the full refund. The original loan booking amount will be debited in full and get adjusted against the full refund credit. The interest debits done earlier will be credited. However, the customer might need to follow up with the bank to ensure that the EMI transaction is canceled and that no more EMIs are debited.
A customer purchases 2 products - Product A (₹2000) and Product B (₹7000). In a 3-month EMI plan, the customer needs to pay an EMI amount of ₹3100 (A total payment of ₹9300 in 3 months). After paying for a couple of monthly installments, the customer returns Product B. In this case, the customer will pay as per the regular EMI plan, that is, without affecting the EMI booking. The refund amount will reflect as a credit on the card. However, the interest already billed will not be reversed.