Auto Loan EMI Payment: Methods, Calculation & Management

An auto loan EMI (Equated Monthly Instalment) is the fixed monthly payment you make towards repaying your auto loan. It includes both the principal amount and the interest accrued on the loan. The EMI amount is predetermined at the time of loan approval and remains consistent throughout the loan tenure, making it easier for borrowers to plan their finances.

Why is paying your EMI on time important?

Timely EMI payments are essential to avoid late fees, maintain a healthy credit score, and ensure financial stability. Missing EMIs can lead to penalties and negatively impact your creditworthiness, which may pose challenges for future loan approvals.

Pro-tip: How to calculate your EMI

You can calculate your EMI using the following formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

• P: Loan amount
• R: Monthly interest rate (annual interest rate divided by 12)
• N: Loan tenure in months

Alternatively, use Bajaj Finserv’s online EMI calculator for quick and accurate results.

Bajaj Finserv offers multiple convenient methods for paying your auto loan EMIs. Here is a detailed breakdown of the payment options:

1. Online payments via the Bajaj Finserv portal

Making payments online is simple and secure. Follow these steps:

1. Visit the Bajaj Finserv customer portal.
2. Log in using your registered mobile number or email ID.
3. Navigate to the ‘Loan’ section and select your auto loan account.
4. Click on the ‘Pay EMI’ option and choose your preferred payment method (debit card, net banking, or UPI).
5. Enter the required details and complete the transaction.

2. Auto-debit setup

Setting up auto-debit ensures that your EMI is deducted automatically from your bank account on the due date. Here is how you can set it up:

1. Log in to the Bajaj Finserv customer portal.
2. Go to the ‘Mandate Registration’ section under your loan account.
3. Provide your bank account details and authorise the auto-debit mandate.
4. Confirm the setup, and your EMIs will be deducted automatically every month.

Tip: Ensure that your account has sufficient funds before the due date to avoid transaction failures.

3. Downloading payment receipts

You can easily download your EMI payment receipts for record-keeping or tax purposes. Here is how:

1. Log in to the Bajaj Finserv customer portal.
2. Go to the ‘Loan’ section and select your auto loan account.
3. Click on ‘Payment History’ and choose the desired time frame.
4. Download and save the receipt for future reference.

Missing an EMI payment can have financial repercussions, but Bajaj Finserv provides solutions to help you get back on track.

Consequences of missing EMIs

• Late fees: Missing an EMI can result in additional charges, increasing your financial burden.
• Credit score impact: Delayed payments can negatively affect your CIBIL score, making it harder to secure loans in the future.
• Loan account status: Repeated defaults may lead to legal action or the loan being classified as a Non-Performing Asset (NPA).

What to do if you miss an EMI

1. Pay the missed EMI immediately: Log in to the Bajaj Finserv portal and clear the overdue amount to avoid further penalties.
2. Contact customer support: If you are unable to pay the EMI, reach out to Bajaj Finserv’s support team for assistance in restructuring your loan.
3. Set up reminders: Use the Bajaj Finserv app or calendar alerts to ensure you never miss an EMI again.
4. Update auto-debit details: If your auto-debit failed due to insufficient funds or outdated bank details, update your information promptly to avoid future delays.