Loan Closure Guide: What You Should Know Before You Decide

Loan closure means completing the repayment obligations and having the loan account updated to reflect that no amount remains payable, subject to the applicable loan terms and account status. A loan may generally be closed through regular repayment or by repaying the applicable outstanding amount before the scheduled end of the tenure. Regular closure occurs when you complete the scheduled EMIs and clear the final amount due. Foreclosure or pre-closure involves repaying the applicable outstanding amount before the original loan tenure ends, subject to the applicable terms. Before closing a loan early, check the amount required for closure and any applicable charges. The amount payable may depend on your loan account, outstanding balance, repayment date, and applicable terms. You can also use authorised Bajaj Finance digital platforms to review your loan details and available full-payment or foreclosure options.

What should you check before closing your loan?

Before making a final or full payment, review your loan account carefully to understand the amount required to complete the closure.

Check the following:

• Outstanding amount: Confirm the amount currently payable against the loan.
• Pending dues: Check whether any overdue EMI or other applicable amount remains unpaid.
• Closure or foreclosure charges: Review the applicable loan terms and account information for any charges.
• Payment date: The amount required for closure may depend on the date on which the payment is made.
• Loan documents: Keep your loan agreement and repayment records available for reference.
• Closure documents: Check which documents will be available after successful closure, such as a closure confirmation or No Dues Certificate, where applicable.

Do not rely on an estimated amount when making a full closure payment. Check the amount shown through an authorised channel for the relevant closure date.

How can you close a loan through Bajaj Finance platforms?

You can check the available full-payment or foreclosure option through the Bajaj Finance App or My Account portal. The exact option may depend on your loan type and account status

Steps through My Account

1. Visit the Bajaj Finance website and open My Account.
2. Sign in using your registered mobile number and OTP.
3. Complete the required verification.
4. Go to Service and select the relevant loan under Your Relations.
5. Select Make loan payments.
6. Choose Full payment/Foreclosure, if the option is available for your account.
7. Review the displayed amount and applicable details.
8. Complete the payment through an available authorised payment method.
9. Save the payment receipt and closure-related confirmation for your records.

You can also check the corresponding options through the Bajaj Finance App. Menu names may vary depending on the platform version and loan account.

Making the final payment is an important step towards loan closure, but the account should also be checked to confirm that the payment has been processed and the closure status is updated. Retain your payment records and review the account after processing.

After payment:

• Check the account status: Confirm that the loan no longer shows an outstanding amount, subject to processing.
• Save payment proof: Retain the transaction receipt, payment confirmation, and relevant bank record.
• Collect closure documents: Keep the applicable closure confirmation, No Dues Certificate, or other document issued for your account.
• Review your credit record: Check the loan status after the relevant reporting cycle and raise a query if the information does not match your records.
• Retain communication: Keep copies of any service request, closure communication, or legal notice related to the account.

A loan closure document can serve as important evidence that the repayment obligation has been completed. Bajaj Finance's loan closure information also highlights the importance of retaining documents such as the final payment receipt and No Objection Certificate, where applicable.

If your account continues to show an outstanding amount after the final payment, compare the account details with your payment records and raise a service request through an authorised channel.

What if you have received a legal notice before loan closure?

If you have received a legal notice relating to an overdue loan, review the notice before deciding how to proceed with closure. The notice may specify an outstanding amount or particular action that requires attention. Check the notice against your loan account and payment records, particularly if you believe you have already made a payment. 

Keep the following information ready:

• Loan account number
• Payment date and amount
• Transaction reference or UTR, where available
• Bank statement or payment confirmation
• Current loan statement
• Legal notice and related communication

If the amount in the notice differs from your records, do not ignore the communication. Raise the discrepancy through an authorised service channel and provide the relevant supporting documents. If an amount remains overdue, take appropriate repayment action according to the applicable loan terms and communication received.