How will extra payments reduce my loan?
When you take up a loan to help turn a dream into a reality, you may not realize that the interest chained to it will draw a lot of money from you. Now there are some ways to save you the hassle and repay the loan well before the scheduled tenure ends. Also, always be on the lookout for loans with low interest rates such as the ones offered by Bajaj Finserv. Further in this article are some tips to reduce your loan amount.
The best two ways to reduce your loan tenure or end it, for that matter, are by making a prepayment or choosing to foreclose the loan.
If you come by some extra cash, you might want to consider prepaying the loan to save on the interest amount. Bajaj Finserv allows prepayment of the loan amount without any extra charges. The prepayment can only be done after your first EMI.
While there is no maximum limit on the prepayment amount, the amount should be at least equal to or higher than the sum of three EMIs. After making the pre-payment, the part prepayment calculator helps you calculate your new EMI, taking into account the new tenure period. This facility can help you keep a track of a loan and lift the burden of monthly payments off your shoulders at the earliest.
As the name suggests, loan foreclosure allows you to repay your loan amount completely, well before the tenure. With loan foreclosure, you can choose to make a full repayment of the loan amount in one single payment, cutting down the interest amount. In addition to your loan amount, interest rate and the tenure, inserting the number of EMIs you’ve paid off and the month in which you’d like to foreclose the loan, you can calculate the foreclosure amount using the foreclosure calculator available with Bajaj Finserv.
What’s more, if you take up a loan from Bajaj Finserv, you can choose to foreclose your loan without any extra charges.
So, these are a couple of ways you can learn how to reduce the cost of loans conveniently.