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With the advent of the internet and evolving technologies, the process of lending has become easier and more accessible than ever. Borrowers today can make the most of a variety of types of loans to meet their specific financial needs, without waiting around or dealing with tedious processes. A prime example of this lending convenience comes in the form of the Bajaj Finserv personal loan, available on Finserv MARKETS.
This personal loan offers substantial loan amounts of up to Rs. 25 lakhs without any collateral as well as several unique advantages to the borrower. The Bajaj Finserv personal loan at Finserv MARKETS ensures quick approval, fast disbursal, complete transparency and requires only minimal documentation to complete the borrowing process.
Moreover, apart from these benefits, the Bajaj Finserv personal loan at Finserv MARKETS also offers convenient options for borrowers to pay off their loans earlier than planned. A borrower could opt for a Bajaj Finserv Personal loan foreclosure or even part pre-pay his loan amount whenever possible.
However, as with any financial product, these processes are subject to charges specific to the lender and the loan amount in question. In order to get a better understanding of the part-prepayment and foreclosure charges on personal loan, let us review some important points below:
When you avail a personal loan, you make your choice of tenure as well as the respective EMI amounts you will be able to pay every month. However, it is possible that during the loan tenure, you accumulate a lump sum of idle money or extra savings.
This amount might not equal the whole outstanding principal amount of your personal loan. Nevertheless, this amount might be useful in your loan payment process since it could significantly bring down your unpaid loan amount. This would therefore, also result in lowering your EMIs as well as the total interest on your personal loan payment.
If at any point you find that you are in a position to make a prepayment towards your personal loan, it is first important to be familiar with the charges associated with the process. With the Bajaj Finserv personal loan, the prepayment charges are as follows:
For customers availing personal loans of the Flexi type(Bajaj Finserv Hybrid Flexi Loan), there are absolutely no prepayment charges. This is because the flexible prepayments are an in-built feature of the Flexi loans. These part prepayments for Flexi loans can be done by the borrower at any time.
In case of a penalty, a penal interest of 2% per month on Overdue EMI + applicable taxes will be charged.
While these charges define the main charges levied for the process, there can be individual differences from one borrower to another.
Clear all of Your Debt Faster: It is a known fact that if not managed prudently, the repayment of an individual’s personal loan can cause the borrower a great deal of financial distress. A borrower finds him or herself in such a scenario because at times, Personal loan EMIs tend to take away a sizable portion of their monthly savings. It is due to this reason why it is often recommended that a borrower prepays their personal loan in full if they have any extra income coming their way. When a personal loan is prepaid, the borrower may have to pay what is known as a prepayment fee. This is typically nominal in nature. Considering the fact that prepayment can help the borrower be free of debt way before the end of the repayment tenure, the fee can be considered to be a small price to pay in that regard. This is charged by the lenders in order to partially make up for the interest earnings that they stand to lose as a result of the same. In addition to the same, the borrower will no longer have to stress out about things such as monthly loan EMIs eating into the pool of funds that the borrower can actually spend on themselves.
Interest Outflow Gets Significantly Reduced: When it comes to subjects such as the prepayment of a personal loan, one of the most important aspects that the borrower must consider is the lock-in period that the loan offer comes with. This is in reference to the period of time that the borrower is not allowed to make any prepayments, be it either in full or partial, towards the loan. However, once the borrower is past the lock-in period, and if they are in possession of some extra income at the time, they can prepay their personal loan either fully or partly. Such an act will essentially save the borrower a considerable amount of interest that would be otherwise paid off with the loan amount. Additionally, one must not forget the fact that the prepayment fee that accompanies loan prepayments would still be pretty much of a bargain to pay, given the amount of interest that they will not have to pay anymore if they choose to prepay their personal loan.
It Can Also Lower Your Debts: Here, we are going to talk about partial prepayments on a personal loan. What it simply does is that it lowers your debt burden. When you prepay a part of your outstanding loan amount, you naturally end up lowering their debt burden. That also lowers the amount of interest that they will need to pay on the total outstanding amount. However, it is indeed recommended that you, the borrower wishes to prepay your loan amount, you must try doing it during the early years of the loan tenure.
Loan Prepayment Boosts up Credit Scores: When a borrower prepays their loan amount in either full or part, they are essentially wiping out or lowering their debt burden in practically a single go. This also naturally improves the borrowers’ credit scores since outstanding loans are directly linked to their credit scores. When the loan amount which is outstanding is made smaller or paid off completely, their credit scores automatically go up as well. An enhancement in credit scores will make life easier for the borrower in terms of applying for a loan in the future.
As with prepayment, the foreclosure of a personal loan also deals with paying off your loan amount earlier than planned. However, in the case of foreclosure, the outstanding personal loan amount is fully repaid with a single payment. The foreclosure charges on personal loan are applicable as per the lender and the loan type and amount availed by the borrower.
Similar to prepayment charges, the foreclosing of a personal loan comes with its own share of charges. Here are some important points regarding the Bajaj Finserv personal loan foreclosure charges:
After paying the required EMI for at least one month, borrowers can close their personal loans. The personal loan foreclosure charges for the same will be at 4% of your outstanding principal loan amount plus applicable taxes.
To get a better idea of the overall charges, visit Finserv MARKETS today. Enter the loan amount, tenure in months, loan rate of interest, EMIs that you have already paid and your desired month of personal loan foreclosure.