Friday, January 18th, 2019
What is Partial Payment?
Partial payments refer to the payment of a money loan or a bill or an invoice less than the entire amount due. It is normally a percentage of the total amount or partial payment. This type of payment allows the borrower to pay the rest amount in the installments. Partial payment of a personal loan can happen when you have a part of lump sum money to pay for your requirement but is not equal to the entire personal loan amount. Partial payment is usually a good thing as it brings down your cash loan EMI and the total interest you pay. It also has another advantage, that is you can make another partial payment if you wish to do so. Partial payments don’t have an adverse effect on your credit score. It reduces the burden of paying the entire personal loan amount at a time which ensures that you pay the remaining amount in the stated time period. Another huge advantage of partial payments is the lesser interest rate. As the entire loan amount is brought down, the interest rate affects too. Make sure you pay your installments on time to save more by minimizing the interest. One of the cons of the partial payment is that you will lose access to a huge amount at once. You can invest the lump sum amount with any financial product that will offer a better rate of return. You always have an option to pay in installments and invest the money somewhere more useful.