The 4% loan closure fee is a charge levied by Bajaj Finance when a borrower decides to repay the loan amount in full before the end of the loan tenure. This fee acts as a compensation for the interest income that Bajaj Finance would have earned if the loan had continued as scheduled.
For example, if you have an outstanding loan amount of Rs. 5 lakh and decide to close it early, the loan closure fee would be calculated as:
4% of Rs. 5,00,000 = Rs. 20,000
This fee is applicable across various loan products offered by Bajaj Finance and is designed to offset the financial impact of early repayment.
Why this matters
Understanding this fee is essential to plan your finances effectively. If you intend to close your loan early, it is important to factor in these charges to avoid surprises and evaluate whether early repayment is financially beneficial.
Factors Bajaj Finance considers for loan closure fee waiver
While the 4% loan closure fee is standard, Bajaj Finance does offer waivers in certain scenarios. The decision to grant a waiver depends on the following factors:
- Loan repayment history
Borrowers with a consistent record of timely EMI payments are more likely to be considered for a waiver. - Loyalty with Bajaj Finance
Customers who have availed of multiple financial products, such as the Bajaj Finance EMI Network Card or Bajaj Finance Gold Loan, may have better chances of receiving a waiver. - Account tenure and relationship standing
Long-term customers with a positive relationship history are more likely to be granted a waiver.
Why this matters
Being aware of these factors can help you strategise your waiver request. Maintaining a good repayment record and fostering a strong relationship with Bajaj Finance can significantly improve your chances of getting a fee waiver.
