Personal loans have gained popularity in the recent past. Any inhibitions that people had towards this category of loans has changed completely. People now are applying for personal loans in great numbers, thanks to the growth in the digital space. The introduction of online EMI calculator and the Eligibility Calculator has aggregated this growth since you no longer have to visit a branch to check your eligibility. You can check the same right from the comfort of your home! The tool enables you to know your eligibility as well as help you calculate your monthly instalments before even applying for a loan! This is immensely beneficial when it comes to your financial planning goals and objectives.
The interest of personal loan is what people generally worry about. If you receive extra cash during the repayment period, you can use it towards closing your loan. The process of closing the loan before the stipulated time is called prepayment. There are two types of prepayment – part prepayment and full prepayment.
In part prepayment, one can pay some amount of the loan and bring down the total outstanding of the principal amount. As the principal amount comes down, so does the interest to be paid on your loan. This eventually brings down your monthly debt and in the longer run, helps you save money too! However, Part Prepayment is only helpful when you have a lump sum amount of money at your disposal that you can use to pay-off your personal loan.
Full prepayment is a self-explanatory term and means paying off the entire loan amount before the duration or tenure of the loan ends. Most lenders will usually have a set lock-in period. So, if you wish to prepay the entire loan amount check with your financial or Non-Banking Financial Institution (NBFC) about the lock-in period (if any). Also, you may want to ask your lender if there are any charges on prepayment of your loan. This is critical as the cost of your loan may increase due to such charges.
Prepayment is a smart option that you should avail as soon as the lock-in period ends. A full prepayment also helps you build a good credit score in the long run. So, if you wish to prepay, do not hesitate, just have a word with your lender regarding the rules of prepayment and go for it.
But, what if we could tell you that with us, at Finserv Markets, you do not have any lock-in period for prepayment of your personal loan? What’s more? There are no prepayment charges and your online personal loan application can be approved under just 3 minutes and the loan amount can be credited to your bank account within 24 hours! So why wait? Apply for Bajaj Finserv Personal Loan with us, today!
Finserv Markets, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!