When a financial emergency arises, help is required both in the form of a loan and cash. Thus, in order to face such unforeseen situations banking sector has introduced an innovative product called ‘flexi loans’. Let us now understand more about it.
What is Flexi Loan?
Flexi loan is a new age loan that efficiently caters to the immediate financial requirement of customers. This loan is a type of personal loan in which lenders provide pre-approved loan limit to their customers which is credited to their bank account and can be utilized by them as and when required. Financial lending institutions like ICICI Bank and Bajaj Finserv provides flexi loans called as Bajaj Flexi Loan to their old and trusted customers.
Flexi Loan Features:
Flexi Loan or Flexi Personal Loan provides three of the most unique facilities which are as under:
- You can withdraw the required loan amount as much required within the credit limit offered by the lender. It is a type of an overdraft facility where in customers can withdraw the required amount when in need of cash for managing contingencies; and
- Customers can prepay the borrowed amount as per their convenience.
- Another great feature of the product is that, no matter how much limit your lender has pre-approved, the interest will be levied only on the amount you withdraw. The remaining amount will not accrue interest.
Flexi Loan Benefits:
Following are the benefits that flexi loans provide:
- Availability of cash at all times: With flexi loans you can always be prepared for unexpected financial requirements. In this type of loan, the loan amount is pre-approved which you can withdraw as many times as you want within the provided credit limit as and when the need arises.
- Ease of prepayment: Flexi personal loans are quite affordable as in this type of loan you can borrow funds within the provided credit limit. Thus, the loan repayment becomes easier as then you borrow funds as per your requirement and as per your desire. Moreover, you can make prepayments when you have excess funds. This helps you in making quick progress in repaying the principal amount.
- Withdraw as many times as you want: If you have already pre-paid the earlier borrowed amount and you need immediate cash, then you can again withdraw the required amount already paid within the loan tenure and within overdraft limits without wasting your time in making fresh loan applications.
- Minimal documentation required: Since flexi loans are pre-approved, there is minimal documentation required to process the loan. This not only saves your time but also reduces the hassles related to the documentation process.
- Lesser interest charges: Flexi personal loans can also help you reduce on interest payments. When you get this loan, the interest is levied only on the amount you withdraw and not the entire amount sanctioned by the lender. This implies that if you get a loan of Rs. 10 lakh, but withdraw only 5 lakhs, you will be paying interest only for Rs. 5 lakh. This also means that your EMIs will be low thus making the loan repayment easy.
Flexi Loan Eligibility Criteria:
Flexi loan option can be availed by following types of customers:
- Salaried Individuals: Salaried Individuals can utilize flexi loan option for managing their personal loan need. Personal loans are availed for funding wedding, vacation, home improvement, higher education and big medical expenses. Opting for a flexi loan option is beneficial as cash management can be done effectively and efficiently.
- Self-Employed Individuals: Self-employed individuals like:
- Businessman can opt for flexi loans for debt financing and debt management and also for other business needs financing like for business growth and expansion. Flexi loan helps businessman in debt financing by raising working capital for the company thus infusing liquidity in the business. Flexi loan can also be utilized for equipment financing and stocking up inventory. Businessman can utilize flexi loan for gaining debt relief i.e. they can pay off their credits and get relief from debt.
- Flexi loan is an effective option for professionals to satisfy their need for cash. For example personal loan for doctors provides cash to doctors which they can utilize to setup their clinic, medical equipment financing etc.
Since the eligibility criteria varies from one lender to another, therefore, to know the exact details contact lender from where you want to avail the loan.
Flexi loans are very effective and can be utilized in the manner the borrower wishes to. Moreover they can offer maximum flexibility to the borrower to use the loan amount and repayment options. If any customer has multiple loans from the same financial institution then the customer can opt for debt consolidation. In debt consolidation, multiple borrowings are consolidated into a single a loan that is easier to pay off. This is a convenient way to manage finances effectively. Rather than paying EMIs of various loans at different rates of interest it is better to avail a flexi personal loan and pay off all the other debts and later pay back the flexi loan conveniently.
For availing flexi loan the application form is available online for almost all the financial institutions in India. Customer either has to log on to the website or has to reach out to the nearest branch for obtaining the form. Fill the form with correct information and then either submit it to your lender.