How to Foreclose Your Auto Loan Online?

Auto loan foreclosure is the process of closing your loan account before the scheduled end of its tenure by paying the outstanding principal amount along with applicable foreclosure charges. This can be a financially prudent decision for borrowers looking to reduce their long-term liabilities.

Reasons to consider foreclosure

1. Save on interest payments: By foreclosing your loan, you can avoid paying interest for the remaining tenure, which can result in significant savings.
2. Simplify finances: Closing your loan early can help you streamline your monthly budget and reduce financial stress.
3. Improve financial flexibility: Foreclosure frees up your resources, allowing you to allocate funds to other priorities or investments.

However, it is important to evaluate the foreclosure charges and weigh them against the potential savings before making a decision.

Foreclosing your Bajaj Finance Auto Loan online is a simple and user-friendly process. Follow the steps below to check your foreclosure amount:

1. Log in to the Bajaj Finserv Service Portal: Use your registered mobile number or email ID to access the portal.
2. Enter the OTP: An OTP will be sent to your registered device. Enter it to verify your identity.
3. Navigate to the ‘Loans’ section: Once logged in, go to the ‘Loans’ section in the dashboard.
4. Select your auto loan: Choose the auto loan account you wish to foreclose.
5. View the foreclosure amount: Under the ‘Loan Details’ section, you will find the foreclosure amount, which includes the outstanding principal and applicable charges.

Additionally, you can download your loan statement for a detailed breakdown of your payments and charges. It is advisable to review the Bajaj Finserv Fees and Charges section for a clear understanding of the costs involved in foreclosure.

Foreclosing your auto loan can have an impact on your CIBIL score, depending on how and when you proceed. Here is what you need to know:

Positive impact

Foreclosure can positively affect your CIBIL score if you have maintained timely repayments throughout your loan tenure. By closing your loan early, you demonstrate strong financial discipline, which lenders view favourably.

Neutral or negative impact

In some cases, foreclosure may have a neutral or slightly negative impact on your CIBIL score. This is because closing a loan reduces your overall credit mix, which can temporarily affect your credit profile. However, this impact is usually minor and short-lived.

Pro-tips for managing CIBIL impact

• Repay EMIs on time: Ensure all your EMIs are paid on time before foreclosing your loan. This builds a positive repayment history.
• Choose the right timing: Foreclose your loan when you are financially prepared and the charges are reasonable. Avoid foreclosing too early, as some lenders may impose penalties for early closure.
• Monitor your credit report: Regularly check your CIBIL score to understand how foreclosure affects your credit profile.

> Pro-tip: Focus on maintaining timely repayments prior to foreclosure to boost your credit history.