Published Aug 1, 2025 4 Min Read

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What is Part Payment for Auto Loans?

Part payment for auto loans refers to the process of paying an additional amount towards your loan principal, apart from the regular EMI payments. This helps borrowers reduce the overall interest payable and shorten the loan tenure. Unlike full prepayment or foreclosure, part payments allow you to retain your loan while enjoying financial benefits.

 

Benefits of part payment for auto loans

  1. Interest savings: By reducing the principal amount, part payments lower the interest accrued on the loan.
  2. Shortened tenure: With a reduced principal, the loan tenure automatically becomes shorter, helping borrowers close their loans earlier.
  3. Flexibility: Borrowers can make part payments as per their financial convenience without completely foreclosing the loan.
     


 

Know more

https://www.bajajfinserv.in/statement-not-show-reduced-balance-after-part-payment
 

Eligibility Criteria for Part Payment

If you are an existing customer of Bajaj Finserv Auto Loans, you may be eligible to make part payments. However, eligibility depends on certain factors:

  1. Loan type: Part payments are generally allowed for standard auto loans but may vary for other loan types, such as Flexi Loans.
  2. Loan status: Borrowers must ensure their loan account is active and free of overdue payments.
  3. Minimum amount: Bajaj Finserv may require a minimum amount for part payments, which varies based on the loan terms.

To check your eligibility, log in to your Bajaj Finserv account or contact customer support.


 

Know more

https://www.bajajfinserv.in/lender-ignores-pre-closure-or-part-payment-request
 

Part Payment vs. Prepayment vs. Foreclosure

Part payment vs. prepayment vs. foreclosure

Understanding the differences between part payment, prepayment, and foreclosure is essential to make informed decisions:

FeaturePart PaymentPrepaymentForeclosure
DefinitionPaying a portion of the principal amount while continuing EMIs.Paying off the entire loan before the tenure ends.Closing the loan by paying the remaining principal and interest.
Impact on InterestReduces overall interest payable.Eliminates interest for remaining tenure.Eliminates interest for remaining tenure.
Loan ContinuationLoan continues with reduced EMIs or tenure.Loan ends entirely.Loan ends entirely.
FlexibilityHigh – Can be done multiple times.Medium – One-time payment required.Low – Final payment required.


 

Know more

https://www.bajajfinserv.in/part-payment-limit-for-personal-loan

Frequently Asked Questions

Can I make part payments during the moratorium period?

Part payments during the moratorium period are generally not allowed, as this period is designed to provide relief from EMI payments. However, borrowers can check with Bajaj Finserv for specific terms related to their loan agreement.

Is part payment allowed for Flexi Loans?

Flexi Loans operate differently from standard loans. While part payments may not be applicable in the traditional sense, borrowers can withdraw and repay funds flexibly within the loan limit. It is best to consult Bajaj Finserv to understand the repayment options available for Flexi Loans.

What happens if I miss a part payment deadline?

Missing a part payment deadline does not affect your regular EMI obligations. However, you may lose the opportunity to reduce your loan interest and tenure. Additionally, Bajaj Finserv may impose fees or penalties, depending on the loan terms.

How frequently can I make part payments?

Bajaj Finserv allows borrowers to make part payments multiple times, subject to certain conditions. There may be minimum gaps between payments or caps on the number of transactions. Contact Bajaj Finserv to understand the specific rules for your loan.

Can I reverse a part payment after submitting it?

Once a part payment is submitted, it cannot be reversed. Ensure you calculate the impact of the payment on your finances and loan terms before proceeding.

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