Most of us avail loans to fulfil our dreams of buying a two wheeler, a home, a car or other consumer products which otherwise seem to be out of the reach due to financial dependencies. While taking a loan, a borrower decides the repayment tenure basis the repayment capacity of an individual.
The borrower is liable to repay the loan within that stipulated time period as per the loan terms, however sometimes there is a change in the income level due to a promotion, new job, incentives etc. which increases customer’s capacity to pay back the loan. This provides customer with an opportunity of repaying the loan before maturity of loan tenure and this repayment of loan in one single payment is known as foreclosure in the financial terms.
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Yes, there might be foreclosure charges depending upon the loan tenure and EMIs paid till date.
Before 12th EMI is paid: 3% on principal outstanding amount + GST (as applicable for loans disbursed w.e.f. 22nd July 2015)
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Amount foreclosed is adjusted against the last EMIs
Download our Mobile App ‘My BAFL’ from Google Play store or Apple store to pay foreclosure or partial foreclosure amount of your loan. Click here to download.
*Terms and Conditions Apply. Finance at the sole discretion of Bajaj Finance Ltd.