What is Personal Loan Part Payment & How it Works?
Part payment of a Personal Loan is when you pay at least 3 EMIs at one go. The advantage of doing this is:
- Decreasing your Personal Loan EMIs
- Decreasing your Personal Loan tenure
When should you do a part payment of your Personal Loan?
- If you get a large sum of money, you can use it to clear your Personal Loan earlier than the stipulated time.
- This may be through a salary bonus or an inheritance, a gift or by selling an asset.
Calculate the impact of part payment before you proceed:
Example of how a part payment can reduce the burden of repayment:
- For example, you have borrowed Rs 2 lakh for 24 months. Your EMI is Rs 9,603 for each month.
- If you can make a part payment of Rs. 40,000 you would be left with an EMI of Rs. 7,682 for the same tenor of 24 months.
- Or you can continue with the same EMI of Rs 9603 and pay off the loan with a reduced tenure, i.e., 19 months instead of 24 months.
Charges levied in part payment of your Personal Loan
- A 2% part prepayment charge is applicable on the part payment made by you before the first EMI clearance.
- There are no part payment charges for Pure FLEXI and Flexi loans.
- Part payment can be done for Pure FLEXI and Flexi loans any time.
Read more to know about Bajaj Finserv’s Personal Loans.