Home Loan Part-Prepayment Charges and Guidelines

When you borrow a Home Loan, you agree to pay back the full repayment amount within a specified period, known as the repayment tenure. This tenure can stretch up to 32 years to make the repayment process easier for you.

However, you can also make partial payments of the loan sum alongside your regular EMI payments. This can happen if you have surplus cash and would like to repay more of your pending loan sum to save on your interest outflow. This feature is referred to as part-prepayment and is a facility many choose to bring down their total cost of borrowing a Home Loan.

​You may also choose to foreclose your Home Loan, which would mean that you pay back the entire outstanding Home Loan balance in one go before the end of your repayment tenure.

Bajaj Housing Finance allows individual borrowers to make part-prepayments or foreclose their floating interest rate Home Loans at no additional costs. Note that individuals and non-individual borrowers who have availed of loans to meet business-related expenses may have to pay nominal fees.

If an individual borrower prefers to prepay their Home Loan in parts above their regular EMI payments, here are the benefits in store for them:

• Interest Savings: Even if you have a repayment tenure of 32 years, you don’t necessarily have to take that long to repay your loan. When you prepay your loan amount, you bring down the pending loan sum, reducing the total interest payable.
• Wider Repayment Capacity: By prepaying your Home Loan amount, you also free up your financial bandwidth to take up new investments and obligations that help you achieve your future goals.
• Nil Charges: As individual borrowers with floating interest rate Home Loans face no penalties for prepaying parts of their Home Loans, they stand to save a lot more at no additional costs.

Non-individual borrowers are subject to nominal fees and charges when they prepay their Home Loan. To understand the charges better, click here.

Every Home Loan decision should be well thought out – even making part-prepayments. Use the Home Loan Prepayment Calculator to see how much you stand to save on your outstanding loan balance by making an early payment. Here are the steps to use it:

1. Select your principal loan amount using the first slider.

2. Select your part-prepayment amount using the next slider.

3. Select your existing EMI amount using the third slider.

4. Select your repayment tenure (in months) using the next slider.

5. Lastly, select your current Home Loan interest rate.

The calculator will show you the revised EMI amount that you have to pay from the next cycle.

*Terms and conditions apply