posted on 2020-06-05 05:11:50 by Admin
In a financial emergency, a personal loan can help to satisfy the liquidity crunch. To manage funds in unforeseen circumstances, you can opt for a Flexi Personal Loan. The personal loan can be fixed or Flexi depending upon the loan amount, interest rate, and repayment period. Most importantly, you must choose the loan which suits your financial requirement.
In this article, we will cover the details of Flexi personal loan and its application process, eligibility, benefits, and EMI. Read on!
This is the innovative financial product offered by few lending institutes. In a Personal Flexi Loan, a lender provides a pre-approved loan limit which gets credit to the customer account. The borrower can use the loan anytime as per the requirement not necessarily in one go.
The interest rate will be applicable as per the credits used by the borrower. You do not need to pay for the credits you have not used. Also, as you keep repaying the credits, the withdrawal limit replenishes to the original ceiling amount.
Here we have written the benefits and features of Flexi loan which will help you to make a better decision.
Interest in Personal Flexi loans starts from 10.50%. The interest will vary as per the loan amount you are applying for and the lending institute policy. You need to pay interest only on the amount you will use. Though you must compare the interest rateof various lenders to get the best rates.
Some important points to note about Flexi Loan Interest Rate
Read: 9 Ways to Reduce Personal Loan EMI
The eligibility of Flexi personal loan is similar to the fixed one. Salaried, self-employed, businessmen, professionals are eligible to apply. The list of the requirements is listed below.
If you are planning to apply for Flexi loans, you must keep these documentsready. Having a copy of the documents will help to apply faster.
You can apply for Personal Loan online or visit your nearest bank. It is always to ask the bank you have an existing relationship with to get the best plans.
For the fixed personal loan, you need to pay the interest on the whole loan amount. Whereas in Flexi loan, you do not have to pay on the total credits.
For example, if you have the personal Flexi loan for 1 lakh and need to use only 20,000 for now. Then you will have to pay the interest only on the INR 20,000 until you pay back the loan.
Whereas in the fixed loan, you would have to pay INR 9100 (approx.) per month for 12 months @10.25%.
Read: How to calculate EMI online?
The basic difference lies in credit usage and interest payment. Flexi loans are best for those who are unsure about their credit requirement. Whereas fixed loans are best when you know the exact needs and likely to spend the money in one go.
Specification |
Flexi Personal Loan |
Fixed Personal Loan |
Loan Amount |
You can withdraw credits in installments as per usage. |
You will receive the funds in your account. |
Interest Rate |
Pay interest as per the use. |
Fix interest as per the loan amount |
EMI |
The EMI will change as per the credit use. |
The EMI will be fixed. |
Prepayment fee |
Mostly lenders do not charge this fee |
Applicable for fixed personal loan. |
Lending Institution |
Only a few lenders offer flexi loans. |
All lenders offer personal loans. |
Q. Which is a better-fixed term or Flexi loan?
A.As compared to regular loans, you can opt for a Flexi loan when you are unsure of your loan requirement. Since you have to pay interest only on the amount you will use, this will save money. However, before opting for the Flexi loan, take a complete note of the EMI from the lender.
Also, a fixed personal loan is ideal for those who have a stable income. Whereas Flexi loans are best for the applicants who are expecting the spike in income shortly.
Q. Are Flexi loans unsecured? Do I need to put up collateral?
A.Like regular personal loans, you do not need to put up collateral for Flexi loans.
Q. Am I eligible for the Flexi personal loan?
A.If you qualify for the age and income status, then you can apply for a Flexi loan. The complete specification will change for different lending institutes.
Q. How can I pay Flexi loan EMI?
A. The loan amount will get transferred to your account. From there, the EMI will automatically debit monthly.
To apply for personal loans, home loans, business loans, credit cards, visit Loanadda.com. Best assistance and guidance is just one call away.