How to Make a Part Payment for a Personal Loan

Making a part payment towards a personal loan can reduce the outstanding principal and may lower future interest costs. Understanding the payment process, applicable charges and effects on your EMI or tenure helps you make informed repayment decisions.

• Check your loan agreement for part-payment eligibility, permitted amounts and applicable charges before proceeding.
• Use the available My Account payment options to make a part payment and retain the transaction confirmation.
• Review how part payment may affect your outstanding principal, remaining interest, EMI and loan tenure.
• Maintain sufficient funds for upcoming EMIs and essential expenses before using surplus money for repayment.
• Verify the updated loan balance after payment, and continue scheduled EMI payments unless you confirm a change.

Part payment, also called part-prepayment, means paying an additional lump sum towards the outstanding principal of your personal loan before the scheduled repayment period ends. This payment is separate from your regular EMI and reduces the principal outstanding once it is successfully adjusted to your loan account. The revised balance may affect the remaining interest payable, depending on your loan terms and repayment arrangement. Before making a part payment, check the minimum or maximum amount permitted, the number of part payments allowed and any applicable charges under your loan agreement. 

These conditions may vary depending on your loan terms.

Part payment differs from advance EMI payment. An advance EMI covers a scheduled instalment, while part payment is directed towards the outstanding loan principal. For example, if your outstanding principal is Rs. 2 lakh and you make a part payment of Rs. 30,000, the principal outstanding may reduce to Rs. 1.7 lakh once the payment is adjusted to your loan account. Confirm the updated balance after the transaction is processed.

How to make part payment for a personal loan online

You can make a personal loan part payment through My Account when the facility is available for your loan account. The steps and options displayed may vary according to your loan type.

Follow these steps to make the payment:

1. Sign in to My Account: Visit the official Bajaj Finance website or app and sign in using your registered details and the required verification.
2. Select your loan account: Open the relevant personal loan under your loan relationships or servicing section.
3. Open the payment options: Select ‘Make Loan Payments’ or the equivalent option available for your account.
4. Choose part payment: Select the part payment option, if displayed for your loan.
5. Enter the payment amount: Enter the amount you want to pay and review the applicable conditions and charges shown.
6. Confirm the details: Check the loan account, payment amount and other details before proceeding.
7. Complete the transaction: Use one of the payment methods available on the portal and retain the confirmation for your records.
8. Check your loan account: Review the account details after the payment is processed to confirm the part payment is recorded.

If the part payment option is unavailable, check your loan agreement or contact official customer support to understand the options applicable to your account.

What are the charges for personal loan part payment?

Part payment charges depend on the loan type and the terms of your loan agreement. Do not assume every personal loan has the same charges or that part payment is always free. Before making a payment, review the applicable charges and conditions displayed for your loan account. You can also check your loan agreement for the relevant terms.

Consider these points before confirming the transaction:

• Loan type: The applicable conditions may differ between a term loan and a Flexi loan.
• Part payment amount: Check the minimum amount permitted for your account, if any.
• Applicable charges: Review the charges shown before confirming the payment.
• Outstanding dues: Check whether you have any overdue instalments or other outstanding amounts that need to be cleared before you proceed.
• Payment confirmation: Keep the transaction reference or receipt for future reference.

If any charge or condition is unclear, seek clarification through an official support channel before completing the transaction. This helps you understand the amount payable and how the payment will be applied. Click here to verify your outstanding loan balance.

A successful part payment reduces the outstanding principal, which may lower the future interest payable under the loan terms. Its effect on your EMI or remaining tenure depends on how the payment is adjusted and the options available for your loan.

The possible outcomes include:

• Lower interest cost: A lower outstanding principal may reduce the interest payable over the remaining loan period.
• Reduced tenure: If your EMI remains unchanged and the repayment schedule is adjusted accordingly, you may repay the loan earlier.
• Lower EMI: If a revised EMI is permitted and applied to your account, your monthly repayment amount may decrease.
• No immediate change to EMI: Your existing EMI and due date may continue until any applicable change is confirmed in the loan account.

Part payment does not automatically guarantee a lower EMI or shorter tenure. Check the updated repayment schedule after the transaction to understand its actual effect on your loan.

What is the difference between part payment and foreclosure?

Part payment reduces a portion of the outstanding principal, while foreclosure involves repaying the full amount required to close the loan before the scheduled end of its tenure.

The key difference is the amount being repaid and the intended outcome.

If you want to reduce your outstanding principal while continuing the loan, part payment may be suitable. If you intend to repay the entire outstanding amount 

and close the loan early, check the foreclosure amount and applicable terms separately.

What should you check before making a personal loan part payment?

Before using surplus funds for part payment, review your loan terms and current financial commitments. Base your decision on the amount you can comfortably set aside without affecting essential expenses or scheduled repayments.

Use this checklist before proceeding:

• Check the outstanding principal and remaining repayment period.
• Review the minimum part-payment amount and any applicable charges.
• Confirm that the loan account is eligible for part payment.
• Check for overdue instalments or other dues that may affect the transaction.
• Keep enough money available for upcoming EMIs and essential expenses.
• Review the payment confirmation and updated loan details after the transaction.

Do not treat a part payment as a substitute for a scheduled EMI. Continue paying each instalment by its due date unless your lender confirms a change to the repayment schedule. If you cannot pay an upcoming EMI, review the available repayment options and contact the lender through official channels.