Personal Loan Part Payment: Charges, Process and Benefits

Personal loan part payment allows you to reduce your outstanding principal without closing the loan. It can affect future interest, EMI and tenure, depending on the repayment structure. Before proceeding, review applicable charges, payment conditions and updated loan details carefully.

• Part payment reduces a portion of the outstanding principal while keeping the loan active.
• It differs from an advance EMI, which pays a scheduled instalment before its due date.
• Applicable charges and payment conditions depend on the terms of your loan account.
• A lower principal may reduce future interest payable over the remaining loan period.
• The EMI or remaining tenure may change based on how the repayment schedule is adjusted.
• Check the updated loan account after payment to confirm the revised repayment details.

A personal loan part payment is an additional payment made towards the outstanding principal without closing the entire loan. It is different from paying a regular EMI in advance because an EMI is a scheduled instalment under the repayment plan, while a part payment is applied towards reducing the principal balance, subject to the applicable loan terms. Once the payment is successfully processed and adjusted, the outstanding principal reduces, which may affect the remaining loan tenure, EMI amount, or future interest payable depending on the repayment structure and terms applicable to the loan. A part payment can be useful when you have surplus funds and want to reduce the loan balance without choosing full foreclosure. Before making the payment, check whether part payment is allowed for your loan account and review any applicable conditions, payment limits, or charges. After completion, check the updated loan details or repayment schedule to understand how the payment has affected the outstanding balance and future repayment obligations.

What are the benefits of personal loan part payment?

Personal loan part payment can reduce the outstanding principal and may reduce the interest payable over the remaining loan period. The actual benefit depends on the amount paid, the remaining loan balance, applicable charges, and how the repayment schedule is adjusted.

Key benefits can include:

A part payment should be evaluated after considering the applicable charges and your other financial commitments. A lower outstanding balance does not automatically mean that the EMI or tenure will change in a particular way.

What charges apply to personal loan part payment?

A personal loan part payment may attract charges depending on the terms applicable to your loan account. The exact charge, if any, should be checked from your loan agreement or the latest loan details before making the payment. There is no single charge that should be assumed for every personal loan because the applicable amount can differ based on the loan terms. Any part payment charge should be reviewed together with the amount you intend to pay so that you understand the total amount required for the transaction. If other applicable charges are shown for your loan account, review them before confirming the payment. Do not rely on a charge amount from another loan, an earlier transaction, or a general online example. After the payment is completed, check the updated loan account to confirm how the amount has been adjusted. This helps you verify the revised outstanding balance and understand the effect of the part payment on your remaining repayment details.

You can make a personal loan part payment through the available Bajaj Finance digital servicing option when the facility is enabled for your loan account.

Follow these steps:

1. Sign in to the Bajaj Finance App or My Account using your registered details.
2. Select the relevant personal loan account.
3. Choose the available loan payment or part-prepayment option.
4. Enter the amount you want to part-pay.
5. Review the payment details, applicable terms, and any charges shown for your loan.
6. Select an available payment method and complete the transaction.
7. Keep the payment confirmation for your records.
8. Check the updated loan details after the payment is processed.

The options displayed may vary according to the loan type and account. Use only the payment option available for your specific loan rather than selecting another payment category. 

How does part payment affect EMI, tenure and interest?

A part payment reduces the outstanding principal once it is successfully adjusted to the loan account. This can affect the remaining EMI, loan tenure and future interest payable, depending on the repayment structure and applicable loan terms.

• EMI: The EMI amount may change if the loan is recalculated after the part payment.
• Loan tenure: The remaining tenure may reduce if the EMI continues at the existing amount.
• Future interest: Interest may reduce because it is calculated on a lower outstanding principal.
• Repayment schedule: The updated schedule should show any change in EMI amount, remaining tenure or future payments.

The exact effect of a part payment can differ between loan accounts. Check the updated repayment schedule after the payment is processed to understand how your EMI, tenure and future interest have changed.

Can you make multiple part payments on a personal loan?

You may be able to make multiple part payments on a personal loan, subject to the terms applicable to your loan account. The number of part payments allowed, the minimum amount, and any other conditions can vary by loan type and repayment terms. Each successful part payment is adjusted towards the outstanding principal, which may affect the remaining loan balance, tenure, EMI or future interest payable. Before making another part payment, check your updated loan details to confirm that the previous payment has been adjusted correctly. Also review any applicable conditions and charges before proceeding. Do not assume that the same part payment rules apply to every personal loan. Refer to your current loan agreement or account information to understand how often you can make part payments and how each payment will affect your remaining repayment schedule.