How to Make Part Payment for Bajaj Finserv Unsecured Loan?

Part payment refers to a borrower’s ability to pay a portion of the outstanding principal amount of their loan over and above their regular EMIs (Equated Monthly Instalments). Unlike prepayment, where the entire outstanding loan amount is settled to close the loan early, part payment reduces the principal amount while keeping the loan active.

Benefits of part payment for unsecured loans

1. Reduces interest burden: By lowering the principal amount, part payment decreases the interest payable over the remaining loan tenure. This can save borrowers thousands of rupees in interest costs.
2. Shortens loan tenure: With a reduced principal, lenders often adjust the loan tenure, enabling borrowers to repay the loan faster.
3. Improves financial flexibility: Making part payments allows borrowers to take advantage of surplus funds without committing to complete loan closure.
4. Enhances credit score: Paying off a portion of the loan early demonstrates financial discipline, positively impacting the borrower’s credit score.

Pro Tip: If you have received a bonus, tax refund, or any other lump sum amount, consider using it for part payment. This strategic move can significantly reduce your financial burden over time.

Making a part payment online through the Bajaj Finserv platform is simple and convenient. Follow these steps to complete the process seamlessly:

1. Log in to your account: Visit the Bajaj Finserv customer portal and log in using your registered mobile number or email ID.
2. Authenticate your access: Enter the OTP sent to your registered mobile number to verify your identity.
3. Navigate to the loan section: Once logged in, go to the ‘My Loans’ section to view your active loans.
4. Select the part payment option: Choose the loan for which you wish to make a part payment and click on the ‘Part Payment’ option.
5. Enter the payment amount: Specify the amount you want to pay as part payment. Ensure that it aligns with the minimum part payment amount set by your lender.
6. Confirm the transaction: Review the details and confirm the payment.
7. Download the receipt: After the transaction is complete, download and save the payment receipt for your records.

While unsecured loans such as personal loans do not offer direct tax benefits like home loans or education loans, there are certain scenarios where part payments can indirectly impact your tax planning:

1. Interest deduction for specific purposes: If the unsecured loan was taken for business purposes, the interest paid on the loan (including the reduced interest post-part payment) may be tax-deductible under business expenses.
2. No tax benefits for personal use: If the loan was used for personal purposes like travel or weddings, part payments do not offer any tax advantages.
3. Annual interest limits: For loans taken for home renovation or purchase, the interest paid may qualify for deductions under Section 24(b) of the Income Tax Act, subject to specific limits.

Pro Tip: Consult a tax advisor to understand how part payments can align with your financial goals and tax planning.