Did You Know?
We serve loans, the best way you can borrow
Money gets tight sometimes. Your loan payments should not add to your stress. Part payments offer breathing room when you need it most.
Part payment in personal loan allows you to pay a portion of your outstanding loan amount before the due date. This helpful option lets you reduce the principal balance without completely closing the loan account. When you make such payments, the total interest due decreases because you're now borrowing less money for the remaining tenure.
Many borrowers find this feature valuable when they receive extra cash through bonuses, tax refunds, or other windfalls. Instead of spending this money, putting it toward your personal loan makes financial sense. The amount paid partially gets deducted from the principal outstanding, potentially shortening your loan tenure.
Remember that while most lenders offer this facility, each has different rules regarding minimum amounts, timing restrictions, and associated fees. Check these terms carefully before proceeding with a part payment.
Making a part payment personal loan payment reduces your principal amount while keeping the loan active. When you pay extra toward the principal, the lender recalculates your loan based on the reduced balance. You can choose whether to decrease your EMI amount or shorten your repayment period.
For example, on a ₹1,00,000 loan with a 3-year term, making a ₹30,000 part payment might reduce your remaining payments by several months. The personal loan part payment calculator available on lendingplate's website helps visualise these savings clearly.
Most lenders need advance notice before accepting part payments, usually requiring a minimum amount like ₹10,000 or a percentage of the outstanding balance. With lendingplate, you can make part payments through their user-friendly app.
Adding extra money toward your loan brings several benefits that help your financial health now and later.
1. Lower Interest Burden
Reducing your principal balance means you pay interest on a smaller amount going forward. The part payment calculator personal loan tools show exactly how much you save with each partial payment made.
2. Improved Credit Profile
Making regular part payments demonstrates your commitment to debt management. Credit bureaus note this responsible behaviour, potentially improving your credit score over time through consistent partial contributions.
3. Reduced Financial Stress
Knowing you're actively decreasing your debt burden creates psychological benefits. Many borrowers report feeling less anxious about their finances after making even modest part payments.
4. Shorter Loan Duration
By consistently making partial payments, you can potentially finish paying off your loan months or even years earlier. This freedom from debt arrives sooner than originally planned.
While part payments don't directly change your interest rate percentage, they significantly lower the actual interest amount paid over time. What is part payment in personal loan arrangements is essentially paying down the principal faster.
1. Principal Reduction Effect
Each partial payment directly reduces the principal balance. Since interest is calculated on the remaining principal, you immediately start paying less interest after each part payment is made.
2. Compounding Benefit Advantage
The effect compounds with each part payment. Early partial payments provide greater interest savings because they affect future payments throughout the remaining loan term.
3. Time Value Consideration
Money saved on interest today has more value than tomorrow. By making part payments, you effectively earn returns equal to your loan's interest rate.
Making partial payments shouldn't be complicated, and with lendingplate, the process remains straightforward for everyone. The personal loan part payment EMI calculator helps determine exactly how much your payments will change afterwards.
1. Check Lender Policies
Before making any part payment, review your loan agreement carefully. Look specifically for minimum amount requirements, timing restrictions, and any applicable fees that might apply.
2. Calculate Your Benefits
Use the part payment personal loan calculator on lendingplate's website to determine exactly how much you'll save. This helps decide whether reducing EMI amounts or shortening the loan tenure benefits you more.
3. Choose Payment Method
Log into your lendingplate account through the website or mobile app. Select your active loan, then choose the part payment option from the account dashboard menu.
4. Confirm Your Choice
Review the part payment details carefully before confirmation. Decide whether you want the payment to reduce your EMI amount or shorten your loan tenure period.
5. Verify Transaction Completion
After making the payment, check that the transaction is completed successfully. Save the confirmation receipt for your records and verify the updated loan details.
Understanding the boundaries set by your lender prevents unexpected issues when making partial loan payments.
1. Possible Fee Charges
Some lenders impose penalties when payments exceed their stated part payment limits. These fees might offset some of the interest savings you hoped to achieve.
2. Prepayment Penalty Activation
Exceeding certain thresholds might trigger prepayment penalty clauses. Read your loan agreement carefully to understand when these penalties apply to your specific situation.
3. Administrative Processing Delays
Very large part payments might require additional verification steps. This could delay the processing time and postpone the benefits you expected from making the payment.
4. Account Status Changes
In rare cases, extremely large part payments might alter your account status. The lender might recategorise your action as an attempt at early loan closure rather than a simple part payment.
Making informed decisions about partial payments requires understanding several key considerations that affect your finances.
1. Timing Considerations
Some lenders restrict when you can make part payments. Typically, most financial institutions allow these payments after completing six months of regular EMI payments first.
2. Minimum Amount
Check whether your lender specifies a minimum amount for part payments. This threshold often ranges between ₹10,000 to ₹25,000 or a percentage of outstanding balance.
3. Associated Fee Structure
Understanding all charges related to part payments prevents surprises. While lendingplate keeps these fees minimal, knowing what to expect helps plan better.
4. Financial Priority
Consider whether making part payments represents your best financial move right now. Sometimes, keeping emergency savings intact might provide better security than reducing loan principal.
Part payment personal loan options provide valuable flexibility for borrowers looking to reduce their debt burden strategically. By putting extra money toward your loan principal, you potentially save thousands in interest charges while gaining financial freedom sooner than planned.
With lendingplate's transparent policies and minimal charges, making partial payments becomes an accessible strategy for managing personal finances. The user-friendly mobile app lets you handle these transactions conveniently without visiting physical locations.
Before making any part payment, calculate your potential savings using the personal loan part payment calculator available on the lendingplate website. This helps determine whether the benefits outweigh any associated fees. Remember that consistent, well-planned partial payments offer both immediate interest savings and long-term financial health benefits.
Most financial institutions allow partial payments, but policies differ significantly between lenders. Some companies restrict these payments during initial loan periods, usually the first six months. Others might limit how frequently you make such payments annually. lendingplate offers flexible part payment options with clear terms outlined in your loan agreement.
Yes, most lenders specify minimum and sometimes maximum amounts for partial payments. These limits typically range from ₹10,000 – ₹25,000 or appear as percentages of your outstanding balance.
Many lenders charge processing fees for partial payments, typically ranging from 1% to 5% of the payment amount. These charges vary widely across financial institutions and loan types. lendingplate maintains transparent fee structures clearly explained during loan application, with competitive rates compared to market standards.
Most lenders require completing a minimum loan period before accepting partial payments, commonly six months of regular EMI payments. This restriction helps lenders recover their administrative costs associated with loan processing. Check your specific loan agreement from lendingplate for exact timing restrictions applicable to your account.
Yes, making regular part payments potentially improves your credit profile in several ways. First, reducing your overall debt burden lowers the debt-to-income ratio. Second, consistently making these additional payments demonstrates responsible financial management.
Download our personal loan app to apply for a personal loan. Get up to 2Lakhs* as a personal loan. Download Now!
Sign into avail a personal loan up to ₹ 2,50,000
Unifinz Capital India Limited is a Non Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI). lendingplate is the brand name under which the company conducts its lending operations and specialises in meeting customer’s instant financial needs.
