How To Request Loan Prepayment To Reduce EMI

Loan prepayment means paying an additional amount towards your outstanding loan before the scheduled end of the loan tenure. It can be made partly or fully. A part prepayment involves paying a portion of the outstanding principal while continuing the loan; full prepayment involves paying the amount required to close the loan before its scheduled end. By reducing the outstanding principal, part prepayment can lower the amount on which future interest is calculated.

After a part prepayment, the lender may recalculate your repayment schedule based on the reduced principal. Depending on the loan terms, you may have the option to reduce your EMI or shorten the loan tenure. Choosing EMI reduction can lower your monthly repayment obligation, while keeping the EMI unchanged may help you repay the loan sooner. The actual impact depends on the applicable loan terms and the option selected.

Steps to request loan prepayment to reduce your EMI

Making a part prepayment reduces your outstanding principal, but your EMI does not automatically reduce in every case. If your loan terms allow an EMI reduction, you may need to raise a separate request to have the repayment schedule revised.

Follow these steps: 

1. Open the Bajaj Finance App or log in to the My Account customer portal.
2. Sign in using your registered mobile number and OTP.
3. Go to My Relations or the Loans section.
4. Select the relevant loan account.
5. Choose the Prepayment or Part-Payment option, enter the amount, and complete the transaction through your preferred payment mode.
6. Once the prepayment is confirmed, go to Help and Support and select Raise a Request.
7. Select Loan Servicing as the category and choose Reduce EMI Amount (instead of tenure reduction).
8. Submit the request and save the reference ticket number for future follow-up.
9. Download and check your revised Repayment Schedule from your loan account once the request is processed.

After submitting the request, allow the applicable processing time for the prepayment and revised repayment schedule to be updated. Review the revised EMI and other loan details carefully to confirm that the changes are reflected correctly in your account. 

Before making a loan prepayment, review the applicable terms and understand how the payment will affect your repayment schedule. Checking these details in advance can help you choose the option that best suits your repayment needs. 

Consider the following:

• Whether any prepayment charges apply to your loan, as per your loan agreement
• The minimum prepayment amount accepted for your loan type
• Whether you want your EMI reduced or your tenure reduced, since this needs to be specified
• The revised interest payable over the remaining tenure, once the prepayment is adjusted

Once you understand these factors, you can make a more informed decision about the amount to prepay and whether reducing your EMI or tenure aligns with your repayment plans. Review the revised repayment schedule after the prepayment is processed to understand the updated loan obligations. 

How to confirm your EMI has been reduced after prepayment

After making a prepayment and requesting an EMI reduction, check your loan account once the applicable processing time has passed. Your loan account statement should reflect the updated EMI amount, while the revised repayment schedule should show the new EMI against the upcoming due dates. You may also receive a confirmation message or other communication from your lender once the change has been processed. If you specifically opted for EMI reduction rather than tenure reduction, check that the remaining loan tenure has not been shortened as part of the revision. Reviewing these details helps you confirm that the prepayment and revised EMI have been correctly reflected in your loan account.