Loan Against Property is an easy way to arrange for finances to meet your personal and business needs by keeping your property as collateral. Since it is a secured loan, the loan amount is high with low interest rates on loan against property compared to unsecured loans.
For example, Bajaj Finserv’s Loan Against Property
One of the major benefits of a loan against property is that you can part-prepay the loan amount anytime during the tenor at zero or minimum pre-pay charges. Read on to know the various aspects of part-prepayment of a loan against property.
Advantages of Part-Prepayment
When you have a lump sum of money, which is not equivalent to the outstanding principal amount, you can part-prepay to bring down the principal amount and save on subsequent EMIs and the interest outgo.
For instance, if you opt for a loan amount of Rs. 3 lakh for a tenor of 60 months at a rate of interest of 15%, your EMIs would come to Rs. 7,317 per month. However, if you part-prepay Rs. 50,000, your EMIs would come down to Rs. 5,947, thereby enabling you to save Rs. 1,190 on your EMIs every month. The tenor also comes down to 47 months
How to Part-Prepay your Loan Against Property?
Part-Prepaying on your Loan Against Property is an easy process. You can do so by either increasing your EMI amount by a certain percentage every year or pay one extra EMI in the same year. Generally, lenders won’t mind accepting an extra EMI in a year. When you get a bonus, make sure you utilise a certain portion of it in part-prepaying your loan.
You can part-prepay your Bajaj Finserv mortgage loan in these 5 simple steps:
- Log in to your My Account account with your credentials
- Select ‘Payments’ and click on ‘Online Payment’
- Go to ‘Part-prepayment’ section and click on ‘Proceed’ tab to initiate the prepayment process
- Enter the amount you want to pre-pay and then click on the ‘Pay Now’ tab after verifying all the details
- You will be re-directed to the ‘Billdesk payment gateway’ to proceed with your payment. Just enter your card details and make the payment.
- Once the payment is done, it will reflect in your loan account within 2 hours
Part-prepayment not only lowers the principal amount but also helps you stay on track on loan repayment within the stipulated tenor, thereby shoring up your credit score and creditworthiness.
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