Proactive loan management helps you avoid financial stress. When you stay on top of your loan repayments, you can maintain a healthy credit score and avoid overdue payments. Also, it ensures financial stability. To facilitate this, Bajaj Finserv offers its customers several effective loan repayment solutions.
Let’s check out some proven tips to help you avoid overdue payments and see how to make timely loan repayments with Bajaj Finserv. Also, we will understand the various loan repayment options offered by Bajaj Finserv and guide you on how to clear your overdue EMIs.
What is loan repayment?
In simple terms, loan repayment is the process of paying back borrowed money to your lender Usually, this repayment is made in regular instalments over a specified period and includes both the principal amount and the interest accrued. Mostly, the structure and terms of loan repayment vary and depend on factors such as:
● Type of loan
● Lender, and
● Borrower’s creditworthiness
Bajaj Finserv offers its customers a wide range of flexible loan repayment options. These options are specifically designed to make loan repayment manageable and stress-free. They also vary depending on the type of loan that the customer has availed.
What are the different types of loan repayments?
To proactively manage loan repayment, there are several methods borrowers can use to pay back their loans. Bajaj Finserv offers three popular loan repayment options to help you manage your loan and save on interest costs. They can be mentioned as:
● Method I: Part-prepayment
A part-prepayment involves paying back a portion of your loan that is more than one EMI. This helps in reducing your principal amount, which, in turn, reduces the interest payable. Ideally, you should prefer using this method when you have extra cash. This method allows you to pay off your loan faster and save on interest.
With a Bajaj Finserv Flexi Personal Loan, you can make part-prepayments without extra cost. Also, you can use the personal loan EMI calculator to see how your part-prepayment affects your loan.
● Method II: Foreclosure
To foreclose your loan means to pay-off the entire outstanding principal amount before the entire loan’s due closure date. In case you have surplus funds and want to clear your debt early, you can choose to foreclose your loan.
When it comes to Bajaj Finserv, you can foreclose your Bajaj Finserv Flexi Personal Loan at no extra cost. This way, you can become debt-free faster.
● Method III: Bullet payment
When you pay only the interest amount each month during the period of your loan term and make a final lumpsum payment of the borrowed amount, this form of loan repayment is called a bullet payment.
Bullet payment method is not commonly available for all credit products and is limited to specific types of loans. Furthermore, as a tip, Bajaj Finserv customers must understand the repayment structure of a personal loan before choosing it. Such an understanding ensures that you select a repayment method that best aligns with your financial situation and benefits you the most.
Top 8 tips to avoid overdue payments
Here are a few tips that you can use to avoid overdue payments:
1. Set up automatic payments
To authorise automatic payments, you can set-up an e-Mandate with your lender. This allows your lender to present your EMI to the bank and make auto debit on the due date. With Bajaj Finserv, you can easily set up these e-mandates using the customer portal.
2. Use calendar reminders
Set up reminders on your phone or calendar a few days before the payment due date. This will give you ample time to arrange funds if needed.
3. Maintain an emergency fund
An emergency fund is usally a fund that should ideally be covering three to six month’s worth of your expenses. This fund is helpful during any form of unforeseen financial crises. Through this emergency fund, you can pay off your loans and avoid any overdue payments even during a financial crunch.
4. Monitor your account regularly
Regularly check your loan account and associated statements to ensure all payments are processed correctly and there are no unexpected charges. With Bajaj Finserv, you can easily obtain your account statements online by logging in to your account and visiting the “Documents centre”.
5. Opt for Part-prepayment
If you have any extra funds, you can opt to make part-prepayments. If you make part payments, you can lower the principal amount which can help you reduce the tenure of your loan or reduce your EMI amount. Bajaj Finserv allows customers to make loan repayments through several popular options, such as foreclosure, part pre-payments, and bullet payments.
6. Keep track of multiple loans
Maintain a record of all your on-going loans if you have more than one loan. This activity or habit can help you determine the total amount that is payable on your loans. You can organise your multiple loans by using tools such as excel sheets and various other that are available online.
7. Use loan repayment calculators
There are various types of calculators available on Bajaj Finserv. You can check the loan calculator to plan your repayments.
8. Consolidate your debts
If managing multiple loans is challenging, consider consolidating them into a single loan with a lower interest rate. This simplifies your repayment process and can reduce the total interest paid.
How to make Bajaj Finance loan repayment?
All Bajaj Finserv customers can make loan repayments using either the Bajaj Finserv website or mobile app. First, let’s understand the process of making loan repayment through the Bajaj Finserv mobile app:
● Start by downloading and installing the Bajaj Finserv app from either the Google Play Store or the App Store.
● Log in using 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.
● Input the loan amount and choose your preferred payment mode.
● Finally, complete the payment.
● After the transaction, you will receive an e-receipt for your records.
Now, let’s see how you can make loan repayment using the Bajaj Finserv website:
● Visit the Bajaj Finserv website, log in, and go to the ‘Bills and recharges’ section under ‘Payments’.
● Next, select ‘Loan repayment’ from the ‘Financial services and taxes’ category.
● Now, choose your specific biller from the drop-down menu and enter your loan account number.
● Click ‘Fetch your bill’.
● After your bill is retrieved, you can select a payment method from the available options, which include credit cards, debit cards, and net banking.
● Enter the required payment details.
● Review them carefully and click ‘Pay Now’.
● Once the payment is successfully processed, you will receive a notification from Bajaj Finserv confirming the transaction.
How to clear your overdue payments with Bajaj Finserv?
Mostly, loan EMIs are automatically debited from your account on the due date. However, they remain unpaid in some rare circumstances, such as technical glitches or when you fail to maintain the requisite bank balance. In such situations, the EMI becomes overdue and needs to be cleared as soon as possible to avoid negatively impacting your credit score and incurring extra fees.
Bajaj Finserv has devised a straightforward process through which customers can make their overdue EMI payments. Let’s see the steps involved in this process:
● Visit the Bajaj Finserv customer portal by clicking the “Sign-in” button on the ‘My Account’ page.
● Enter your mobile number and date of birth to log in.
● Once logged in, select the loan account that has overdue EMIs.
● From the list of payment options, choose “Overdue or missed EMI”.
● Enter the amount of the overdue EMI and check for any additional penal charges.
● Complete the payment to clear your overdue amount.
Proactive management of loan repayments helps you maintain financial stability and avoid unnecessary stress. For this purpose, Bajaj Finserv provides various loan repayment options such as part-prepayment, foreclosure, and bullet payment methods. Using them, you can reduce your interest costs and pay off your loans faster.
Furthermore, to avoid overdue payments, you can set up automatic payments (eNACH), use calendar reminders, maintain an emergency fund, and monitor your accounts regularly. If you have multiple loans, keep track of them and consider consolidating them if necessary.
Additionally, Bajaj Finserv offers a simple process for making loan repayments and clearing overdue EMI payments through its website and mobile app. By following these tips and utilising the available resources, you can effortlessly manage your loans and make timely loan repayments.
*Terms and conditions apply.
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