Flexi loans are most suited for applicants who are looking for a personal loan with a relaxed repayment schedule. Some of the main features and benefits of a flexi personal loan are as follows:
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Features and Benefits of Flexi Personal Loans
Eligibility Criteria
Documents Required for a Flexi Personal Loan
The documents required for availing a flexi personal loan and a term loan are similar in most cases. Some of the main documents needed to apply for a flexi loan are as follows:
Note: The above list of documents is indicative and lenders may ask for additional documents depending on the individual applicant’s profile.
Difference between Term Loan and Flexi Loan
| Basis | Term Loan | Flexi Personal Loan |
|---|---|---|
| Nature | The lender disburses the approved loan amount to the borrower’s account. | The lender sanctions a credit limit to the borrowers, from which they can withdraw as per their requirements. |
| Interest Calculation | The lender charges interest on the outstanding loan amount. | The lender charges interest on the amount used/withdrawn out of the total credit limit sanctioned by the lender, until the repayment of the drawn amount. |
| Prepayment Charges | Most of the lenders levy a prepayment fee on prepaying personal loans availed at fixed rates. No prepayment fee is charged on the prepayment of personal loans availed at floating rates. | No prepayment fee is charged. |
| Repayment schedule | The repayments are usually made in the form of EMIs, consisting of both principal and interest components. | Borrowers are free to repay the principal component as per their financial position, till the tenure of the overdraft facility. However, the lenders may require the borrowers to service their interest component at predetermined intervals. |
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Step 2: Provide your personal details
Step 3: Enter OTP to verify your mobile number
Step 4: Select the loan purpose and loan amount
Step 5: Compare offers and apply for the best-suited loan
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FAQs
Is there a difference between a ‘flexi personal loan’ and a ‘personal line of credit’?
No. Both of the terms, ‘flexi personal loan’ and a ‘personal line of credit,’ usually mean the same and offer the same set of features. In most cases, it’s just a difference in name from one provider to another. However, in some rare cases, a personal line of credit might have an interest-free period which is not usually applicable in case of a flexi personal loan.
How can I use a flexi loan?
Flexi loans come with flexible end-usage and can be availed to meet any personal financial need.
How much interest is charged on a flexi loan?
Flexi personal loans are usually offered at lower or sometimes comparative rates similar to regular personal loans. However, the applicable rate of interest depends on multiple factors including your credit score, repayment capacity, type of employment and existing financial liabilities.
How is interest calculated on a flexi personal loan?
A number of lenders calculate interest rate on a flexi loan on a daily basis, as per the amount utilized by the end of the day. However, this may differ from one lender to another. Moreover, the interest is only calculated on the amount utilised and not on the entire credit limit sanctioned. This is what sets a flexi loan apart from a regular personal loan. This is how it helps you save on the total interest payout.
How can I repay my flexi personal loan?
You can repay your flexi loan in easy EMIs. In case of flexi loans, you just have to repay the amount that you utilise and not the entire loan amount sanctioned by the lender. In some cases, lenders also offer you an option to pay only interest as your instalment during the initial years of your loan tenure. You can also choose to prepay your flexi loan before the end of its complete tenure without any prepayment penalties.
Is there a limit to the number of times I can withdraw and make re payments on my flexi loan?
No, there is no limit on the number of times you can withdraw funds from the loan account and make repayments. However, you must ensure that you withdraw an amount within the credit limit sanctioned by your lender.
Do all banks and NBFCs in India offer flexi personal loans?
No, not all banks and financial institutions in India offer flexi loans. Some top providers of flexi loans in India include Bajaj Finserv, ICICI Bank and MoneyTap. The flexi personal loan offered in each case is slightly different from the other. However, the general idea of the loan remains the same.
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