What Are Part Payment Charges on a Loan

Part payment charges depend entirely on your loan variant, a Term Loan can carry a charge of up to 4.72% (inclusive of taxes) on the amount prepaid, while Flexi variants generally carry none, so check which applies to you before assuming a cost either way.

• Your loan variant decides whether you pay anything at all. Always confirm the exact figure for your specific loan in My Account rather than assuming a flat rate applies
• A part payment charge and a foreclosure charge are not the same thing. One applies to a partial prepayment, the other to closing the loan entirely, and the rate can differ between them
• A part payment does not automatically clear overdue EMIs. If you have pending dues, check how the payment will be adjusted before assuming it resolves everything
• The effect on your EMI or tenure is not guaranteed. Some arrangements shorten your tenure, others lower your EMI, so check your updated schedule after the payment is processed

Before making a part payment, check the applicable charge for your specific loan variant in My Account, and compare it with the interest you would actually save.

Part payment charges are fees that may apply when a borrower makes an additional payment towards reducing the outstanding loan amount before the scheduled repayment period ends. A part payment allows borrowers to pay more than their regular EMI amount, which may help reduce the outstanding balance as per the applicable loan terms.

Whether a charge applies, and how much, depends on your loan type and variant. Before making a part payment, review your loan details and understand the applicable conditions, so you can assess the impact and make an informed decision.

What are Bajaj Finance's part payment charges?

Charges depend on your loan variant. For a Term Loan, part-prepayment charges can be up to 4.72%, inclusive of applicable taxes, on the amount prepaid. Flexi Term Loan and Flexi Hybrid Term Loan variants generally carry no part-prepayment charge.

Check the exact figure shown when you enter the amount in My Account or the Bajaj Finance App, since it depends on your specific loan and terms, rather than relying on a general figure.

What should you check before making a part payment?

Before making a part payment, review your loan account details and understand the applicable conditions. This helps you assess the impact and avoid confusion about the repayment process.

• Loan terms: Review the conditions related to part payments in your loan agreement
• Applicable charges: Check the specific charge, if any, shown for your loan variant
• Outstanding amount: Understand your current loan balance before making an additional payment
• Payment impact: Review how the part payment may affect your EMI, tenure, or remaining repayment obligations

Reviewing these details helps you understand your loan position before taking action.

You can check the applicable charge and make a part payment through My Account or the Bajaj Finance App.

Through My Account or the Bajaj Finance App

1. Sign in using your registered mobile number and OTP
2. Select your loan account
3. Go to Make Payments, then select Part-prepayment
4. Enter the amount and review the applicable charge shown before you confirm
5. Complete the payment and save the confirmation

What are the benefits of making a loan part payment?

A part payment reduces the outstanding principal on your loan, which may reduce the interest payable over the remaining tenure, depending on your loan terms. 

Beyond the direct interest saving, it can also help you:

• Review your repayment options: Understand whether reducing your EMI or your tenure suits your requirements, where either option is available
• Track your loan progress: Review your updated outstanding balance and repayment details after the payment

Before making a part payment, compare the applicable charge against the interest you would actually save, since the charge can offset some or all of the benefit depending on your loan variant.

Does a part payment reduce your loan interest and tenure?

A part payment reduces your outstanding principal, which may reduce the interest payable over the remaining loan period. Whether it affects your EMI or your tenure depends on the applicable loan terms and how the payment is adjusted in your account. In some cases, a reduced principal may shorten your remaining tenure if your EMI stays unchanged, while other arrangements may instead reduce your EMI.

If your EMI is overdue, do not assume that a part payment will clear pending dues or close the loan. Check your current outstanding amount and confirm how the payment will be adjusted before you pay.