How much is the EMD in a bank auction?

The sale notice sets it; no rule fixes a percentage. 10% of the reserve price is common.

Is the EMD refunded if I don’t win?

Yes, without interest, after the auction closes. The timing is set by the sale notice, not by a rule.

When do I pay the 25% after winning a bank auction?

Immediately — the same day or not later than the next working day. The 25% includes the EMD you have already paid (Rule 9(3)).

Can I get more than 15 days to pay the balance?

Only if the bank agrees in writing, and never beyond three months from confirmation (Rule 9(4)). Ask before the fifteenth day and keep the written reply.

What happens if my home loan is delayed and I miss the deadline?

Without a written extension, the deposit can be forfeited and the property resold (Rule 9(5)). The Supreme Court has upheld forfeiture of the entire deposit (Shanmugavelu, 2024).

Can a bank give a home loan before the auction?

A lender can assess what you are eligible to borrow before the auction, but it can sanction a loan only after you win, once it has reviewed and valued the property you bought.

Money, loans and the all-in cost

The Four Money Clocks of a Bank Auction: EMD, 25%, 15 Days and the Extension

Auction Dunia · Law and portal facts checked as of 21 October 2026 · 7 min read

The short answer

A bank auction runs on four payment clocks: the EMD before you bid, the 25% deposit (including the EMD) by the next working day after you win, the balance by the fifteenth day of confirmation of sale, and — only if the bank agrees in writing — an extension of up to three months. Miss the balance deadline and the whole deposit can be forfeited.

Key points

The EMD is set by the sale notice, not by law — typically 10% of the reserve price — and is paid before the auction.
The 25% deposit includes the EMD and is due the same day or by the next working day (Rule 9(3)). It is always your own money; no lender funds it.
The balance is due on or before the fifteenth day of confirmation of sale (Rule 9(4)). Some sale notices count from the auction date instead — plan to whichever is stricter.
An extension of up to three months exists only if it is agreed in writing with the bank, before the deadline. It is the bank’s decision, not a right.
If the balance is not paid in time, the deposit is forfeited and the property is sold again (Rule 9(5)); the Supreme Court has upheld forfeiture of the entire deposit.

The four clocks, in order

1
Before the auction — EMD
The earnest money deposit is paid to take part. Its amount, due date and payment method are in the sale notice; 10% of the reserve price is common. Public sector bank auctions on BAANKNET use a wallet you top up in advance; other notices name a bank account for NEFT or RTGS.
Rule 8(7)(e); the sale notice
2
On winning — the 25% deposit
The highest bidder pays 25% of the sale price, inclusive of the EMD already paid, immediately — the same day or not later than the next working day. If it is not paid, the property is sold again.
Rule 9(3)
3
After confirmation — the balance
The bank confirms the sale. The remaining 75% is due on or before the fifteenth day of confirmation of sale.
Rule 9(2), 9(4)
4
If more time is needed — the extension
A longer period, not exceeding three months, is possible only “as may be agreed upon in writing” between you and the bank.
Rule 9(4)

The EMD: how it is paid and when it comes back

No rule fixes the EMD percentage; the bank sets it in the sale notice, along with the payment method and the last date. On BAANKNET, the portal used for most public sector bank auctions, the EMD is paid from a wallet that has to be topped up, and the credit showing, before the auction — allow a few working days for registration and the credit to show. Private banks usually name an account for NEFT or RTGS.

If you do not win, the EMD is returned without interest after the auction closes; the timing is set by the notice, not by a rule. If you do win, the EMD counts towards the 25% deposit.

The 25% deposit: why it must already be in your account

Rule 9(3) gives the winning bidder until the next working day at the latest to bring the deposit to 25% of the sale price. That is too short for any loan process, and in any case no lender sanctions a loan on a property before you have won it — the lender has to value the property you have actually bought. The 25% therefore comes from your own funds, liquid and ready on the auction date.

A worked example (illustrative only)

Reserve price ₹80 lakh, EMD ₹8 lakh. You win at ₹90 lakh. The 25% deposit is ₹22.5 lakh; the EMD already counts, so ₹14.5 lakh more is due the same day or by the next working day. The balance of ₹67.5 lakh is due by the fifteenth day of confirmation.

The fifteen days: when they start, and what has to happen inside them

Under Rule 9(4) the balance is due on or before the fifteenth day of confirmation of sale. Confirmation can come after the auction day, so the Rule’s fifteen days can start later. Some banks’ sale notices, however, ask for the balance within fifteen days of the auction itself. Read the notice and work to the stricter of the two.

If part of the balance will come from a home loan, the whole loan process — application, the lender’s legal and technical review of the property, sanction and disbursement to the bank — has to fit inside this window. This is why a loan eligibility check before the bid matters: it tells you what you can borrow on your income and credit profile, so the only steps left after the win are the ones that depend on the property.

The extension: in writing, before the deadline

Rule 9(4) allows the balance period to be extended to a maximum of three months, but only by agreement in writing between the buyer and the bank. The Supreme Court has confirmed that the period can be extended with written consent (IDBI Bank v. Ramswaroop Daliya, 2024). It is the bank’s decision; it cannot be assumed or claimed.

The writing matters. In 2026 the Supreme Court set aside an auction sale where the balance was paid after the fifteenth day without a written extension, holding Rule 9 mandatory; the bank had accepted the late money and issued a sale certificate, and that did not save the sale (M.R. Vasumathi v. Authorised Officer, 2026). In another case the Court held that confirmation alone does not put a sale beyond scrutiny (E. Muthurathinasabathy v. Sri International, 2026, as reported). A verbal assurance from a branch is not an extension; our Red Flag File on the balance paid on day 19 walks through the pattern.

Ask for the extension in writing, before the fifteenth day.
Make sure the letter states the new date.
Keep the bank’s written reply with your sale papers.

Forfeiture: what you lose if the balance is late

If the balance is not paid within the fifteen days or the agreed extension, “the deposit shall be forfeited and the property shall be resold”, and the buyer loses all claim to the property and the money paid (Rule 9(5)).

The Supreme Court has upheld this strictly. It held that forfeiture is a statutory consequence of non-payment (Authorised Officer, SBI v. C. Natarajan, 2023), and that the entire deposit can be forfeited — not only the bank’s actual loss — even if the property later sells for more (Authorised Officer, Central Bank of India v. Shanmugavelu, 2024). The exception the Court has recognised is where the delay was the bank’s own doing, for example where the bank refused to accept the balance (Ramswaroop Daliya, 2024).

Plan the money before the bid

Read the sale notice for the EMD amount, payment method and last date, and for how it counts the fifteen days.
Have the EMD and the rest of the 25% in liquid funds before the auction date.
Know what you can borrow before you bid, from an eligibility check on your income and credit profile. At Auction Dunia it is run by Kenstone Credit, our group’s credit desk, and you can take the result to any lender.
Keep your own funds for the costs a home loan does not cover — stamp duty, registration and any dues that come with the property.
If the loan may not disburse within fifteen days, ask the bank about a written extension early, not on day fourteen.

What the auction route cannot promise

An extension of the balance period is at the bank’s discretion and must be in writing; it cannot be promised in advance.
A home loan for the balance can only be applied for after you win, and its timing depends on the lender’s review of the property.
Courts have upheld forfeiture of the entire deposit when the balance was late; a higher resale price does not entitle the buyer to a refund.

Questions buyers ask

Sources

Statutes, rules and judgments first. Checked as of 21 October 2026; the law and portal practice change, so confirm against the source before relying on a detail.

This guide explains the law and the process in general terms. It is not advice on any specific property; that belongs in a due diligence report on the property itself.

A specific property in mind?

Tell us what you are buying it for, and we will tell you what needs checking before you pay EMD.

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