Most of us avail of loans to fulfill 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 the customer’s capacity to pay back the loan. This provides the customer with an opportunity of repaying the loan before the maturity of loan tenure and this repayment of the loan in one single payment is known as a foreclosure in the financial terms.
Yes, there might be foreclosure charges depending upon the loan tenure and EMIs paid to date.
Before 12th EMI is paid: 3% on principal outstanding amount + GST (as applicable for loans disbursed w.e.f. 22nd July 2015)
Amount foreclosed is adjusted against the last EMIs
*Terms and Conditions Apply. Finance at the sole discretion of Bajaj Finance Ltd.Apply for Loan Calculate Your EMI