Advance EMI Payment for Unsecured Loan: Process and Benefits

An advance EMI payment means paying one or more of your upcoming loan instalments before they fall due. This option is available for Bajaj Finance unsecured loans through My Account on the borrower portal and app.

The amount paid towards advance EMI is applied towards your scheduled monthly instalments only. It is not treated as part-prepayment or foreclosure of the loan. Your outstanding principal remains the same, and your loan continues on its existing schedule for the months not covered by the advance payment.

Even after making an advance EMI payment, you are required to continue paying remaining EMIs as they fall due. Missing an EMI after an advance payment carries the same consequences as any other missed payment, including penal charges and a negative entry on your credit report.

When advance EMI payment is useful

Advance EMI payment is a practical option in specific situations where you want to secure future EMI payments ahead of time.

• Surplus funds available now: If you have additional funds this month and want to use them to cover upcoming instalments, advance payment lets you do this without making a formal part-prepayment
• Anticipated cash flow gap: If you expect reduced income or higher expenses in a future month, paying that month's EMI in advance prevents a potential missed payment
• Avoiding bounce charges: If you anticipate a period where your NACH or ECS debit may fail due to low account balance, advance payment covers those months and avoids bounce charges
• Irregular or seasonal income: Borrowers with income that varies across months can use advance payment to cover EMIs during leaner periods by paying during higher-earning months
• Protecting your repayment record: Advance EMI payments are recorded as on-time payments for the months they cover, which helps maintain a clean repayment history

Advance EMI payment is done entirely online through My Account. No branch visit is required.

1. Log in to My Account on the Bajaj Finance website or open the Bajaj Finance app using your registered mobile number and OTP
2. Go to the Services section and select your loan account from the Your Relations tab
3. Click on Make Loan Payments and select the Advance EMI option
4. Select the month or months for which you wish to make the advance payment
5. Click Proceed to Payment and choose your payment method: UPI, net banking, or debit card
6. Click Pay Now and complete the transaction
7. Save your payment confirmation. A reference number is generated immediately and a confirmation SMS and email are sent to your registered contact details

After the payment is processed, your loan account will reflect the advance EMI as paid for the selected months.

What advance EMI payment does and does not do

If your goal is to reduce the outstanding principal or close the loan early, the correct options are part-prepayment or foreclosure, both available through My Account under Make Loan Payments.

How advance EMI payment affects your CIBIL score

Advance EMI payments are reported to credit bureaus for the months they cover. Each advance EMI records as a paid instalment in your repayment history, which contributes positively to your credit record.

Paying EMIs in advance helps you:

• Avoid missed payment entries for the months covered
• Maintain a consistent on-time repayment record during periods of lower income or cash flow uncertainty
• Demonstrate responsible repayment behaviour to future lenders who check your credit report

One important point: advance payment for specific months does not protect months that fall outside the covered period. If an EMI falls due in a month that is not covered by your advance payment and you miss it, that missed payment will still be reported to credit bureaus and will reduce your CIBIL score. Your EMI obligations continue for all remaining months as per your loan schedule.

Difference between advance EMI payment, part-prepayment, and foreclosure

These three options are available through My Account but serve different purposes.

Advance EMI payment is not a substitute for part-prepayment or foreclosure. If you want to reduce the total cost of your loan or close it early, contact Bajaj Finance customer care at 8698 010 101 or check My Account to understand which options are available for your specific loan.