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Home Loan Starting 6.65%*


What is Loan Prepayment

A loan against property is a secured financing option wherein a collateral is mortgaged to avail of funds. Loans Against Property have no end-usage restrictions and offer high-value loan amounts against low-interest rates, making them an ideal financial solution to access quick and easy funds.

Another major advantage of a loan against property is that the loan amount can be prepaid anytime during the tenor without incurring hefty additional charges. With Bajaj Housing Finance, prepayment of loan against property entails following a few steps.

How to Prepay Loan Against Property?

Part-prepayment or foreclosure encompasses repaying the credits in parts before they are due, during the tenor. Our loan against property is available against flexible repayment options, which allows partial prepayments. This feature can help individuals reduce their debt when they have access to additional funds and manage their finances efficiently.

Prepayment of loan against property is an easy process and involves paying off the entire due before the tenor ends. Part-prepayment entails increasing the EMI by a certain percentage every year or paying off an extra EMI.

To Part-prepay Your Bajaj Housing Finance Loan Against Property, Follow These Steps Below:

  • Step 1: Visit our online portal and log in to your account using proper credentials.
  • Step 2: Click on 'Payments' and then 'Online Payment.’
  • Step 3: After selecting the ‘Part-prepayment’ section, click on the ‘Proceed’ tab.
  • Step 4: Now enter the amount to prepay and select the 'Pay Now' tab, having verified all the details.
  • Step 5: After you are redirected to the ‘Billdesk Payment Gateway’, proceed with the payment. Now, enter the card details and make the prepayment.
  • Step 6: The payment will get processed within 2 hours and reflect in your account.

Prepayment Charges on Loan Against Property

The following are the foreclosure and part-prepayment charges for a Bajaj Housing Finance Loan Against Property.

Part-Prepayment Charges and Foreclosure Charges

Borrower type: Individual Term Loan Flexi Loan
Time period (months) >1 >1
Foreclosure charges NIL NIL
Part-payment charges NIL NIL

Borrower Type: Non-Individual Term Loan Flexi Loan
Time period (months) >1 >1
Foreclosure charges 4%* on the principal outstanding 4%* on the sanctioned amount during the Flexi Interest Only
Loan repayment tenor; and
4%* on the available Flexi Loan Limit during the Flexi Term Loan Tenor
Part-payment charges 2%* on the part-payment amount NA


*GST, as applicable, will be payable in addition to prepayment charges.

Some other conditions to remember when calculating prepayment charges:

  • For Flexi interest-only loans, these charges get calculated based on the sanctioned limit.
  • Charges are calculated on the current dropline limit for Flexi term loans.
  • Charges are applicable on the outstanding principal for term loans.

RBI Circular on Prepayment Charges

As per RBI guidelines, no charges or fees are to be imposed for prepayment of loan against property for the following conditions:

  • The loan has to be availed of at floating interest rates.
  • The loan application should be made by an individual applicant and not a corporate entity.

We follow RBI guidelines for foreclosure of loans against property. Thus, we provide foreclosure and part-prepayment facilities at zero charges provided that the above conditions are met.

Even for borrowers who don’t qualify under these conditions, our prepayment charges are nominal. Another important point to remember for part-prepayment or foreclosure is that borrowers need to pay at least one EMI or an amount exceeding it.

What are the Benefits of Prepayment?

The following are some benefits of prepayment:

  • The primary benefit of part prepayment of loan against property is that individuals can lower the principal left to be repaid.
  • Foreclosing frees them from large debts quickly.
  • It lowers the EMI amount or the loan tenor.

Foreclosing or part prepaying a loan against property can aid individuals in several ways, the most important of which is lowering the total cost of the loan.

Nonetheless, to enjoy such benefits and more, individuals must qualify for a loan against property by following these requirements:

  • Nationality: They must be a citizen of India and reside in the country.
  • Age Group: Borrowers must be between 25 and 60 years of age if they are salaried. If self-employed, their age needs to be 28 to 70 years.
  • Employment Status: Either a self-employed applicant with a steady income or salaried with a private or public concern or an MNC.

Fulfilling these requirements can make individuals eligible for a loan against property and its adjoining benefits from Bajaj Housing Finance.