When you borrow a loan, you repay it in small monthly instalments over a fixed period of time. However, if you have surplus funds, you can pay the entire outstanding amount in one go and close your loan early. This process is called loan foreclosure. This repayment option helps you to repay your loan faster and become debt-free sooner.
Foreclosing a loan is a common practice if you want to become debt-free before the end of your loan tenure. But what if you’ve missed out on your equated monthly instalments (EMIs) and your loan is now in an overdue status? Can you still foreclose the loan? The answer to this question depends on multiple factors such as your lender’s policy and the terms and conditions of your loan.
However, if you have an ongoing loan with Bajaj Finance with overdue instalments, you can foreclose the loan. In such a case, you’ll need to pay penal charges. Also, when you foreclose your Term Loan with us, you are also liable to pay a loan foreclosure fee. The foreclosure amount that you finally pay will then comprise the principal amount, the interest accrued, penal charges for the overdue EMI and foreclosure charges. It’s important to note that when you fail to pay an EMI on time, you’ll have to pay the penal charges – irrespective of whether you foreclose the loan.
If you’re looking to foreclose your loan account with an overdue EMI, you can use our digital customer services and make the payment easily. You can visit the customer portal – My Account on our website or use our app to foreclose your loan.
If you’re using our customer portal – My Account, follow these simple steps to foreclose the loan.
- Click on the ‘Pay Now’ button on this page to visit My Account – Bajaj Finance customer portal.
- Enter your registered mobile number and the OTP to sign-in.
- Verify your details with your date of birth and proceed.
- Choose foreclosure from the list of payment options.
- Select the loan account you want to foreclose.
- Enter the required details, review the additional charges and proceed to make payment.
In case you are using our app, you can follow these steps for loan foreclosure.
- Click on the ‘Pay Now’ button on this page to open the payments section on your app.
- Select the foreclosure tab from the available payment options.
- Choose the loan account you wish to foreclose.
- Enter the required details, review the additional charges and proceed with the payment.
