How to Make a Part-Prepayment on Your Medical Equipment Loan

Part-prepayment lets you repay part of your outstanding medical equipment loan principal before the scheduled end of your tenure. The payment reduces your principal balance, but the effect on your interest costs, EMI, and remaining tenure depends on your loan terms.

• Check your loan agreement and confirm the part-prepayment options available for your account.
• Review Bajaj Finance’s published fees and charges. The listed term-loan charge can reach 4.72% of the principal amount prepaid, inclusive of applicable taxes, subject to the applicable terms.
• Confirm whether your loan variant or floating-rate loan status qualifies for an exemption from part-prepayment charges.
• Check your outstanding balance, overdue instalments, available funds, and upcoming business expenses before deciding how much to pay.
• Obtain confirmation of the payment and review your updated loan statement and repayment schedule.

Before you proceed, compare potential interest savings with applicable charges and your need for working capital. Continue paying your scheduled EMIs until Bajaj Finance confirms any change to your repayment obligations.

Part-prepayment means paying an additional amount towards your outstanding medical equipment loan principal before your tenure ends. You continue repaying the remaining balance according to your loan terms.

For example, if you use a medical equipment loan to purchase diagnostic equipment for your clinic, you might receive additional business income and decide to reduce your outstanding principal. You can consider part-prepayment after accounting for essential expenses, upcoming EMIs and applicable charges.

Part-prepayment differs from foreclosure. With part-prepayment, you repay only a portion of the outstanding principal and continue repaying the remaining loan. With foreclosure, you repay the full outstanding amount and close the loan before the scheduled end of the tenure, subject to the applicable terms.Your loan agreement determines whether part-prepayment changes your EMI, remaining tenure or both. Before you make an additional payment, check the available options with Bajaj Finance and confirm how the lender will adjust your repayment schedule.

How can you part-prepay your medical equipment loan online?

You can start by checking your medical equipment loan details through the official Bajaj Finance My Account portal or app. The available online options depend on your loan account, so confirm the supported process before transferring any additional amount.

Follow these steps:

1. Sign in. Open the official Bajaj Finance My Account portal or app and sign in using your registered mobile number and one-time password (OTP).
2. Select your loan account. Open the relevant loan section and select your medical equipment loan if it appears.
3. Review your loan details. Check your outstanding principal, pending dues, and current repayment schedule.
4. Confirm part-prepayment availability. Look for the relevant repayment option, if the platform displays one for your account. Contact Bajaj Finance if you cannot find it.
5. Check the amount and charges. Confirm the permitted payment amount, applicable charges, and instructions before proceeding.
6. Complete the approved process. Follow the instructions Bajaj Finance provides for your loan account and keep the transaction reference or receipt.
7. Verify the payment. Check your loan account or statement to confirm that Bajaj Finance has recorded the part-prepayment correctly.

Do not assume that the regular EMI payment option also supports part-prepayment. If you cannot find the relevant option, contact Bajaj Finance through an official support channel and ask how to proceed. Continue paying your scheduled EMIs until the lender confirms any change to your repayment terms.

What charges apply to medical equipment loan part-prepayment?

The applicable part-prepayment charge depends on your loan variant and the terms that apply to your account. Bajaj Finance’s published medical equipment finance fees and charges list a charge of up to 4.72% of the principal amount prepaid, inclusive of applicable taxes, for term loans.

The published schedule also specifies conditions under which part-prepayment charges do not apply. Check the current schedule and your loan agreement before you calculate the total amount payable.

Review these points before proceeding:

• Loan variant: Confirm whether your account uses a term-loan or Flexi structure. The published schedule states that the listed part-prepayment charge does not apply to the Flexi Hybrid Loan.
• Floating-rate exemption: The published schedule states that part-prepayment charges do not apply to individual or Micro and Small Enterprises (MSEs) with floating-rate loans, with or without a co-borrower, subject to the stated conditions.
• Charge calculation: For a term loan where the charge applies, calculate the charge using the principal amount you intend to prepay and the confirmed applicable rate.
• Outstanding dues: Check any overdue instalments and confirm the lender’s requirements before making the payment.
• Total amount payable: Account for the part-prepayment amount and any applicable charges before transferring funds.

For example, if the applicable charge were 4.72% and you prepaid Rs. 1,00,000 of principal, the charge would amount to Rs. 4,720, inclusive of applicable taxes, under that assumption. Your actual charge may differ or may not apply, depending on your loan variant and eligibility for an exemption. Confirm the amount with Bajaj Finance before making the payment.

Consider part-prepayment when you have surplus funds and can reduce your outstanding principal without affecting your clinic’s essential expenses or scheduled EMIs. Compare the potential interest savings with the applicable charges and your need for working capital.

• You have surplus funds: Consider paying part of your principal after setting aside money for equipment maintenance, staff costs and other essential expenses.
• Your cash flow is stable: Check whether your expected income can cover upcoming EMIs after the additional payment.
• You want to reduce interest costs: Ask Bajaj Finance to estimate how part-prepayment would affect your remaining interest costs under the approved repayment structure.
• You want to change your repayment burden: Confirm whether your loan terms allow an EMI reduction, a shorter tenure or another repayment adjustment.
• You have checked the charges: Compare potential savings with any applicable part-prepayment charge before deciding how much to pay.

For example, if your clinic expects a large payment from a customer, do not commit the full amount to loan repayment until you have accounted for supplier invoices, payroll, maintenance and other near-term expenses. Choose a prepayment amount that supports your repayment goals while preserving enough working capital to operate your practice.

What should you check before making a part-prepayment?

Check your available funds, outstanding dues, applicable charges and revised repayment terms before making a part-prepayment. These checks help you avoid using money that you need for essential business expenses or upcoming loan instalments.

• Available funds: Reserve enough money for essential household and business expenses, equipment maintenance and upcoming EMIs.
• Overdue instalments: Check your loan account and confirm whether you need to clear overdue amounts before making a part-prepayment.
• Applicable charges: Confirm the charge for your loan variant and check whether an exemption applies to your account.
• Remaining tenure: Review the time left on your loan and ask how the payment could affect your repayment schedule.
• Repayment adjustment: Confirm whether Bajaj Finance will reduce your EMI, shorten your tenure or apply another adjustment under your loan terms.
• Payment records: Keep the transaction reference and verify the updated loan balance after the lender records your payment.

Part-prepayment should not leave your practice short of funds for essential expenses. If you cannot confirm the applicable charge or repayment adjustment, contact Bajaj Finance before making the payment.

How does part-prepayment affect your EMI and loan tenure?

Part-prepayment reduces your outstanding principal, but the effect on your EMI, remaining tenure and total interest depends on your loan terms and the repayment adjustment Bajaj Finance confirms. When the outstanding principal falls, the lender has a lower principal balance on which to calculate future interest, subject to the applicable interest method and loan terms. The resulting interest savings depend on the amount prepaid, the remaining tenure, the interest rate and any applicable charges. Your loan agreement and the lender’s approved repayment process determine how the payment affects your schedule. Bajaj Finance may offer a reduction in EMI, a reduction in the remaining tenure or another adjustment where the loan terms permit it. Do not assume that the lender will automatically apply your preferred option. After the payment, check your updated loan statement and repayment schedule. Confirm the revised outstanding balance, EMI amount and due dates, where applicable. Continue paying your scheduled EMIs until Bajaj Finance confirms a change to your repayment obligations.