A personal loan from Bajaj Finserv can be used for a variety of purposes, including home renovation, medical treatment, unplanned travel, and wedding. You can borrow up to Rs. 42 lakh with minimal documentation and speedy disbursal. Not only this, Bajaj Finserv allows part pre-payment and also foreclosure (preclosure) of personal loan that allows you to save on the overall interest component. Read this article to know the charges for personal loan preclosure, including the answers to some frequently asked questions regarding the process and requirements for this.
Bajaj Finserv Personal Loan Preclosure Charges and Other Processing Fees
Let’s first understand the meaning of preclosure/ foreclosure of a personal loan. Typically there is a pre-defined repayment tenure for a personal loan. However, if you completely pay off the loan before this contracted tenure, it is called pre-closure/ foreclosure. While if you pay off only a part of the outstanding loan before the designated time, it is called partial prepayment of the personal loan. The following are some key charges and conditions related to a personal loan from Bajaj Finserv:
|Type of Personal Loan
|Bajaj Finserv Personal loan
|2% of the total amount part prepaid
|Complete Prepayment/ Foreclosure
|4% of the principal outstanding as on the date of foreclosure.
|Bajaj Finserv Flexi Personal Loan
|Complete Prepayment/ Preclosure
|4% on the the total amount withdrawn as on the date of preclosure.
Note: Taxes may apply at applicable rates.
Please note that the processing fee is same for both the personal loan variants offered by Bajaj Finserv and can vary up to 4% of the loan amount.
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Steps of Personal Loan Prepayment Process
While Bajaj Finserv has not provided clear cut instructions regarding how you can apply for a prepayment/foreclosure of your personal loan, you can easily get in touch with the customer service department of the NBFC to know the particulars of the process.
Documents Required for Preclosure of Personal Loan
Usually no additional documents (apart from cheque/draft sanctioning preclosure amount) are required if you want to foreclose/prepayment your Bajaj Finserv personal loan. However, in case any specific document is required, a Bajaj Finserv representative will inform you regarding this when you apply for the foreclosure/prepayment.
Important Points Regarding Bajaj Finserv Personal Loan Prepayment
- You can prepay Bajaj Finserv personal loan for 6 times in a calendar year at any interval suitable to you.
- There in no maximum limit with respect to Bajaj Finserv personal loan prepayment.
- However, there is a minimum prepayment limit of 3 EMIs. In other words, you have to pay at least 3 EMIs in advance for it to be considered as a prepayment.
- You can only prepay the loan after completing the payment of the first EMI.
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Bajaj Finserv Personal Loan Foreclosure Benefits
Following are the benefits of personal loan Foreclosure.
Complete Prepayment/ Foreclosure
When you completely pay off the loan amount before the due date, it is called preclosure. Following are its benefits:
- It helps you save on the overall interest payout.
- Moreover, you are freed from the burden of loan.
When you pay at least three EMIs of your personal loan with Bajaj Finserv at once, it is called part prepayment. The benefit of doing so is that
- You get a chance to decrease your monthly EMI amount or
- The loan repayment tenure is reduced
The choice of benefit usually lies with the customer however, the NBFC may decide to provide either of the benefits as per the bank’s internal criteria.
For example: You have borrowed Rs. 1 lakh at an interest rate of 12% for a period of 1 year and your monthly EMI is Rs. 8,885.
If you can prepay Rs. 20,000 then your monthly EMI will decrease to s. 7,108 for the same tenure of 12 months.
Or you can continue paying the same EMI of Rs. 8,885 for a reduced tenure of 10 months instead of 12 months.
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Frequently Asked Questions (FAQs)
Q. When should I consider partly prepaying my personal loan with Bajaj Finserv?
You should consider partly prepaying your persona loan with Bajaj Finserv, when you have some extra funds. For instance, when you receive a salary bonus or a windfall investment return or when you have sold an asset and do not have a better performing reinvestment option.
Q. When can I make part prepayment of my standard personal loan from Bajaj Finserv?
You can make part prepayment of your standard personal loan with Bajaj Finserv after paying off the first loan EMI.
Q. When can I prepay flexi personal loan from Bajaj Finserv?
There is no time restriction for prepayment of Bajaj Finserv Flexi personal loan. Thus, you can prepay the flexi personal loan any time after start of the loan tenure.
Q. What are the foreclosure charges for Bajaj Finserv personal loan?
The foreclosure charges for Bajaj Finserv standard and flexi personal loans correspond to 4% of the principal outstanding or loan amount withdrawn on the date of foreclosure.
Q. What is the difference between Bajaj Finserv standard laon/term loan and flexi loan?
Standard loan or Term loan: You get a fixed loan amount at a pre-determined rate of interest for a specified loan tenure.
Flexi Loan: Pre-approved loan on the basis of your profile, where you can withdraw multiple times depending on your need.
Q. What is the interest rate for Bajaj Finserv personal loan?
Interest rate for Bajaj Finserv personal loan starts from 13% p.a. onwards.