Proper loan management is key to avoiding financial stress. By staying consistent with loan repayments, you can maintain a good credit score and ensure financial stability. Bajaj Finserv provides customers with several solutions to help manage their loan repayments smoothly.
In this article, we will explore some proven tips for timely loan repayments and review the various repayment options available through Bajaj Finserv. Additionally, we’ll guide you on how to clear overdue EMIs.
What is Loan Repayment?
Loan repayment refers to the process of paying back borrowed money to the lender, usually in regular instalments over a specified period. This repayment covers both the principal and the interest. The structure and terms of loan repayments can vary depending on:
- The type of loan
- The lender
- The borrower’s creditworthiness
Bajaj Finserv offers a variety of flexible loan repayment options to ensure that customers can repay their loans without hassle. These options vary depending on the type of loan availed by the customer.
Different Types of Loan Repayments
Managing loan repayments proactively can be easier when you know your options. Bajaj Finserv offers three popular methods to help you repay your loan and save on interest:
- Part-prepayment
- Part-prepayment allows you to pay more than your regular EMI, which reduces the principal amount, thereby lowering the interest payable. This option is ideal when you have extra funds, as it helps you pay off your loan faster and reduce interest costs.
- With Bajaj Finserv Flexi Personal Loans, you can make part-prepayments without any additional charges. You can also use the personal loan EMI calculator to see the impact of part-prepayment on your loan.
- Foreclosure
- Foreclosure means repaying the entire outstanding loan amount before the actual loan tenure ends. If you have surplus funds and wish to clear your debt early, this is a great option.
- Bajaj Finserv allows customers to foreclose their Flexi Personal Loan without any extra charges, enabling you to become debt-free sooner.
- Bullet Payment
- In a bullet payment method, you pay only the interest during the loan term and make a lump sum payment of the principal at the end of the term. This method is typically available for specific types of loans.
- It’s important to fully understand the loan’s repayment structure before choosing this option to ensure it aligns with your financial goals.
Top 8 Tips to Avoid Overdue Payments
- Set up Automatic Payments
- Authorize automatic payments by setting up an e-Mandate with your lender. This ensures that your EMI is automatically debited from your account on the due date. Bajaj Finserv allows you to set up these mandates through its customer portal.
- Use Calendar Reminders
- Set reminders a few days before your payment due date. This will help you stay on track and ensure that funds are available for the payment.
- Maintain an Emergency Fund
- Build an emergency fund that covers at least three to six months’ worth of expenses. In times of financial difficulty, this fund can help you make your loan payments on time.
- Monitor Your Account Regularly
- Frequently review your loan account and statements to ensure your payments are being processed correctly and to avoid any unexpected charges. You can easily access your account details through the Bajaj Finserv online portal.
- Opt for Part-prepayment
- If you have extra cash, consider making part-prepayments. This helps reduce the principal amount, which can either shorten the loan tenure or lower the EMI amount.
- Keep Track of Multiple Loans
- If you have multiple loans, keep a record of all the payments due. Use tools like spreadsheets to organize and track them efficiently.
- Use Loan Repayment Calculators
- Bajaj Finserv offers various calculators to help you plan your loan repayments.
- Consolidate Your Debts
- If you find it difficult to manage multiple loans, consider consolidating them into a single loan with a lower interest rate. This simplifies the repayment process and may help you save on interest costs.
How to Make Loan Repayments with Bajaj Finserv
Bajaj Finserv offers convenient repayment options through its website and mobile app. Here’s how you can repay your loan:
Using the Bajaj Finserv Mobile App:
- Download the app from Google Play or the App Store.
- Log in with your credentials.
- Go to the ‘Bills and Recharges’ section.
- Select ‘Loan Repayment’ under ‘Financial Services and Taxes’.
- Choose “Bajaj Finance” as the issuer and enter your Loan Agreement Number.
- Enter the loan amount and select your payment method.
- Complete the transaction and receive an e-receipt for your records.
Using the Bajaj Finserv Website:
- Visit the Bajaj Finserv website and log in.
- Navigate to ‘Bills and Recharges’ under ‘Payments’.
- Select ‘Loan Repayment’ and choose your biller from the drop-down menu.
- Enter your loan account number and click ‘Fetch your bill’.
- After retrieving your bill, select a payment method (credit card, debit card, or net banking).
- Review the details and click ‘Pay Now’.
How to Clear Overdue Payments
Loan EMIs are usually debited automatically. However, in cases of technical issues or insufficient funds, an EMI may remain unpaid. It’s crucial to clear overdue payments quickly to avoid penalties and protect your credit score.
Here’s how you can clear overdue EMIs with Bajaj Finserv:
- Visit the Bajaj Finserv customer portal and log in using your mobile number and date of birth.
- Select the loan account with the overdue EMI.
- Choose the “Overdue or missed EMI” option and check for any penal charges.
- Complete the payment to clear your overdue amount.
Conclusion
Proactive loan management helps you maintain financial stability and avoid unnecessary stress. Bajaj Finserv offers various repayment options such as part-prepayment, foreclosure, and bullet payments to help you reduce interest costs and pay off your loans faster. By setting up automatic payments, using reminders, and tracking your accounts, you can easily manage your loans and avoid overdue payments.
Additionally, Bajaj Finserv provides convenient repayment options through its mobile app and website, making the process hassle-free. Use these tips to stay on top of your loan repayments and maintain a healthy financial future.
Terms and conditions apply.
