Published Dec 24, 2025 4 Min Read

What Are Bajaj Loan Foreclosure (FC) Charges?

Loan foreclosure charges are fees levied by a lender when a borrower decides to repay the outstanding loan amount before the end of the agreed loan tenure. For Bajaj Finance loans, these charges are calculated as a percentage of the outstanding principal amount, typically ranging from 4% to 4.72% (inclusive of GST).

Why do foreclosure charges exist?

Lenders, including Bajaj Finance, impose foreclosure charges to recover administrative costs and compensate for the loss of potential interest income that would have been earned over the loan tenure. For instance:

  • Administrative costs: Processing early repayment involves additional paperwork and operational efforts for the lender.
  • Revenue recovery: Foreclosing a loan impacts the lender’s projected earnings from interest, which is a primary source of revenue.

Example: If you foreclose a personal loan with an outstanding balance of Rs. 1 lakh, a 4% foreclosure charge would amount to Rs. 4,000, plus applicable GST.

Foreclosure charges ensure that lenders can maintain financial stability while offering flexible repayment options to borrowers.

Why Does Bajaj Charge 4%–4.72% Foreclosure Fees?

The foreclosure fee charged by Bajaj Finance typically falls between 4% and 4.72%, depending on the loan type. This percentage includes GST and is a standard practice across the financial industry.

Breaking down the foreclosure fee:

  1. Base charge: The core foreclosure fee is set at 4% of the outstanding loan amount.
  2. GST inclusion: An additional 18% GST is applied to the foreclosure fee, bringing the total charge to approximately 4.72%.

Industry comparison:

While foreclosure charges may seem high, they are in line with industry norms. Most non-banking financial companies (NBFCs) and banks levy similar fees to cover operational and revenue-related costs.

How timely repayment triggers foreclosure charges:

Foreclosure charges are applicable only when you decide to repay the loan in full before the tenure ends. For example, if you have a loan tenure of 36 months but plan to close it in the 18th month, the applicable foreclosure fee will be calculated on the remaining principal amount.

Can you close a Bajaj loan without foreclosure charges?

In most cases, Bajaj Finance requires borrowers to pay foreclosure charges. However, there are certain exceptions where you may be able to avoid these fees:

  1. Special offers: Bajaj Finance occasionally runs promotional campaigns waiving foreclosure charges for specific loan products. Check with customer care or your loan agreement for details.
  2. Loan-specific terms: Some loans, such as MSME loans, may have unique terms allowing partial or full fee waivers under certain conditions.

Steps to explore waivers:

  • Review your loan agreement for any fee waiver clauses.
  • Contact Bajaj Finance customer care to inquire about ongoing offers.
  • Submit a formal request for waiver consideration if applicable.

Know more

Part payment charges 

Incorrect or Unwanted Charges by BFL — What to Do

Micro, Small, and Medium Enterprises (MSMEs) often have different foreclosure rules due to government policies aimed at supporting small businesses. Here is an overview of the foreclosure rules for MSME borrowers:

  • Reduced charges: MSME loans may have lower foreclosure fees compared to personal or consumer loans.
  • Waiver eligibility: MSME borrowers can apply for foreclosure charge waivers under specific schemes or government-mandated policies.

Steps to avail waivers for MSME loans:

  1. Check eligibility:
    • Ensure your loan qualifies as an MSME loan under Bajaj Finance’s terms.
    • Verify if your business is registered under the MSME category.
  2. Submit required documents:
    • Provide proof of MSME registration, such as a Udyam certificate.
    • Submit a formal waiver request to Bajaj Finance.
  3. Adhere to timelines:
    • Waiver requests must often be submitted within a specific time frame after loan disbursement.
  4. Follow up:
    • Track your application status via the Bajaj Finance customer portal or app.

By following these steps, MSME borrowers can potentially reduce or eliminate foreclosure charges, easing their financial burden.

Common issues customers face during loan closure

Closing a loan is not always a seamless process. Here are some common challenges Bajaj Finance customers face during loan closure, along with actionable solutions:

  • Missed payments:
    • Issue: Unpaid EMIs or penalties can delay the loan closure process.
    • Solution: Clear all outstanding dues before initiating foreclosure.
  • NOC delays:
    • Issue: Delays in receiving the No Objection Certificate (NOC) after foreclosure can cause inconvenience.
    • Solution: Follow up with Bajaj Finance customer care if the NOC is not issued within the stipulated time.
  • Balance discrepancies:
    • Issue: Incorrect calculation of the outstanding balance can lead to disputes.
    • Solution: Request a detailed loan statement from Bajaj Finance to verify the balance before making the payment.
  • Incomplete documentation:
    • Issue: Missing documents can stall the foreclosure process.
    • Solution: Ensure all required documents, such as ID proof and loan agreement, are submitted.

Addressing these issues promptly can help you close your loan smoothly and avoid unnecessary delays.

How to request foreclosure charges waiver from Bajaj

If you believe you qualify for a foreclosure charge waiver, follow these steps to submit your request:

  1. Log in to the Bajaj Finance customer portal:
    • Use your registered mobile number to access your account.
  2. Navigate to the foreclosure section:
    • Locate the ‘Foreclosure Request’ option under the loan services menu.
  3. Submit a waiver request:
    • Provide details such as your loan account number and reason for requesting the waiver.
  4. Upload supporting documents:
    • Attach any required documents, such as proof of MSME registration or promotional offer eligibility.
  5. Track your request:
    • Use the portal or app to monitor the status of your waiver application.

Pro-tip: Bajaj Finance also offers chatbot and customer care support for quick assistance with waiver requests. Submit your waiver request today to explore potential savings!

Frequently Asked Questions

What exactly is the FASTag annual recharge option offered by Bajaj Finserv?

The FASTag annual recharge option allows you to prepay for toll transactions for an entire year. It eliminates the need for frequent recharges, saving time and effort. Bajaj Finserv simplifies the process with its user-friendly app and platform, offering features like spending tracking and auto-recharge.

Can I switch from regular recharge to annual recharge in my Bajaj Finserv FASTag mid-year?

Yes, you can switch to the annual recharge option mid-year. However, ensure that your current balance is sufficient and your account details are updated before opting for the annual plan.

How many trips are covered under the Bajaj Finserv FASTag annual recharge?

The number of trips covered depends on the specific annual pass plan you choose. Check the terms and conditions of your selected plan to understand the trip limits and route eligibility.

Are there any extra convenience fees for using the annual recharge option with Bajaj Finserv?

Bajaj Finserv does not charge additional convenience fees for the annual recharge option. However, ensure that you review the terms and conditions for any applicable transaction fees or GST.

How do I renew or manage my Bajaj Finserv FASTag annual recharge for the next year?

To renew your annual recharge, log in to the Bajaj Finserv app or website, navigate to the FASTag section, and select the renewal option. Ensure that your account details are updated and your balance is sufficient for seamless renewal.

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Bajaj Finserv App for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

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Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

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