Key components of a loan statement you should know
- Loan Balance
Includes both principal and any outstanding interest.
- Interest Rate & Interest Charges
Breaks down how much of your payment is allocated toward interest.
- Payment Due Date & Amount
Specifies the total amount you need to pay for the upcoming due date.
- Fees and Charges
- Payment History
Helps track your repayment progress and spot any missed payments.
Why it’s important to review your loan statement?
- Track Loan Repayments – Regularly reviewing your loan statement allows you to keep track of how much of your loan has been repaid and how much is still outstanding.
- Avoid Late Payments – The payment due date and amount section helps you stay informed about when your next EMI is due, avoiding late payments and penalties.
- Monitor Interest Charges – Checking the interest rate and charges section ensures you know how much you’re paying in interest and helps assess if refinancing or early repayment is a good option.
- Spot Unexpected Fees – Reviewing fees and charges allows you to identify any unexpected fees such as late payment charges, prepayment penalties, or service charges applied to your loan.
- Detect Errors – Regularly reviewing your loan statement helps you identify any discrepancies or errors, such as overcharges or missed payments, so they can be corrected promptly.
- Plan Your Finances – Knowing your loan balance, interest rate, and upcoming payment amounts allows you to better plan your budget and finances.
- Improve Financial Control – A clear understanding of your loan’s progress empowers you to make better financial decisions, including considering options like early repayments or loan refinancing.
How to spot errors in your loan statement?
- Compare Payment History – Cross-check your payment history with your bank records to ensure every payment you’ve made is accurately reflected in the loan statement. Any missing or extra payments should be reported.
- Verify Interest Rate and Charges – Make sure the interest rate and related charges are consistent with the loan agreement. Any deviations could indicate an error.
- Review Additional Fees – Double-check any fees or charges listed. Unfamiliar fees, such as late payment penalties or service charges, may indicate an error that needs addressing with your lender.
Common mistakes borrowers make on loan statements
- Ignoring Payment Due Dates
- Overlooking Additional Fees
- Not Verifying Interest Charges
- Missing Payment History Review
- Assuming Loan Balance is Always Accurate
- Neglecting Changes in Loan Terms
- Skipping Regular Statement Reviews
To easily manage your loan details, log into your Bajaj Finance loan account or check loan status online for accurate updates.