Part-prepayment is a facility where you pay back your loan that is more than one EMI. This is an easy and effective way to save on your interest amount as the part-prepayment amount directly gets deducted from your principal outstanding as on the month of making the payment.
If you have extra cash and you want to use it to pay off your loan early, you can choose a part-prepayment facility. However, part-prepayment of a loan can be tricky equation.
It is advisable to first look through your loan account statement to understand the principal and interest amount left to be repaid. A part-prepayment is most beneficial in the initial tenure as it will help you reduce your interest amount payable and in some cases can even shorten the loan tenure. Additionally, financial institutions sometimes charge a part-prepayment fee, which is a specific percentage of the amount you want to pre-pay. Make sure you read the terms and conditions of part-prepayment thoroughly before going ahead.
With a Bajaj Finserv Flexi Personal Loan, you get the benefit of part-prepayment at no additional cost.
For instance, you are a salaried professional, with a pre-sanctioned line limit of Rs. 10 lakh. You withdraw Rs. 2 lakh for a tenure of 24 months. At the end of six months, you would have repaid roughly Rs. 50,000. Now, you have just received a bonus of Rs. 50,000. You can utilise these funds to prepay your loan and reduce your interest burden at no extra cost.
In fact, with a Flexi Personal Loan you also get the benefit of withdrawing funds again when you need them without having to go through the hassle of re-applying for a personal loan.
In such cases, a Flexi Personal Loan is the best option as it gives you the flexibility to withdraw funds as many times as you wish and part-prepay when you want.
Follow the steps below to part-prepay your personal loan amount by visiting My Account.
- Sign in to our customer portal with your mobile number and date of birth.
- Choose ‘part-prepayment from the list of payment options.
- Select the loan account for which you are making part-prepayment.
- Enter the amount and review the applicable charges, if any.
- Once you enter all the required details, proceed to part-prepay your loan.
