What is Flexi-Personal Loan? And How It Works?

Flexi-Personal Loans have a pre-approved cash limit, so you can avail instant financial help for unplanned expenses. Know what is Flexi-Personal Loan and how it works?
Financial emergency can arise at any time. Not all are equipped with liquid cash to deal with such situations. Just like others, you may be compelled to take credit for dealing with unplanned expenses. Banks offer Flexi-Personal Loans to ensure that the borrowers sail through the tough times with ease.

What is Flexi-Personal Loan?

Flexi Personal Loan is a different option to a loan in which a credit line is fixed to the customer.

With this approved credit limit, the customer can take the amount as per his requirement.

After this and if needed, the remaining amount can also be taken from the credit line.

In this, only the amount used has to be returned with interest.

How does Flexi-Personal Loan Work?

It works just like the overdraft facility where the lender pre-approves the loan amount, and you can withdraw the required money within the allotted credit limit. You can use the loan for any purpose, and interest is charged only on the amount you wish to use. No interest will be available on the remaining loan amount. Any salaried or self-employed individual can apply for Individual Flexi-Personal Loans. The eligibility criteria may differ from one lender to another.

If you want to avail instant funds, a Flexi-Personal Loan would be the right choice.

Following are the Benefits of Loan types:

If ever you are in a financial crisis, then this loan type would be an ideal option as you get quick access to funds. You can withdraw the amount whenever required

You can prepay the loan amount if you have additional funds. It helps you to reduce the burden of the principal amount

Since the bank pre-approves the credit limit, you are entitled to withdraw anytime based on your emergency.

Zero documents are required for Flexi-Personal Loan, as it is a pre-approved credit facility.

Interest is charged on the amount you withdraw. For example, if you have applied for a loan of “10 lakh” rupees and you withdraw only “5 lakh” rupees, then the interest rate is applicable only on the amount withdrawn. This means that repaying your loan will be easier.

How to Check Flexi Loan Eligibility Criteria?

Flexi loan option can be availed by the following types of customers:

Salaried Individuals: Salaried individuals can use the Flexi Loan option to manage their personal loan requirement. Personal loans are taken for marriage, vacation, home improvement, higher education and financing large medical expenses. Opting for flexi loan option is beneficial as cash management can be done effectively and efficiently.

Self Employed Individuals: Self-employed individuals such as:

  • Merchant can opt for flexi loans for debt financing and debt management and also for other business needs financing like business development and expansion. Flexi Loan helps the businessman in debt financing by raising working capital for the company, thus infusing liquidity into the business. Flexi loans can also be used for equipment financing and stock up inventory. Businessmen can use flexi loans to get debt relief i.e. they can pay their credit and get relief from debt. How to choose the right car loan?
  • Flexi loans are an effective option for professionals to meet their cash requirement. For example personal loan for doctors provides doctors with cash which they can use to setup their clinic, medical equipment financing etc. Personal Loan EMI Calculator.

Benefits of Flexi Personal Loan:

  • After approving the line of credit of Flex Personal Loan, you can withdraw the amount anytime you want from the limit.
  • This is one such personal loan option in which you do not need to mortgage anything.
  • There is an option to repay the loan amount used in a lump sum or as small EMIs.
  • If you withdraw the amount once from the credit limit and then need it, then again the amount can be withdrawn once more or any number of times according to the limit. (For this no separate request or documents are required)
  • In this loan option, you get a higher loan credit limit, out of which you have to pay interest only on the amount used, which reduces the additional loan burden.

Documents for Flexi Personal Loan

Any one of the following documents will be required while applying for the loan.

  • ID Proof : Aadhaar Card, PAN Card, Driving License, Voter’s ID or Passport
  • Address Proof : Aadhaar Card, Driving License, Bank Account Statement or Passport
  • Income Proof : Salary Slips or Bank Account Statement

Why should I opt for a Flexi Personal Loan instead of a normal personal loan?

While a regular personal loan has a scheduled repayment schedule and the interest rate can be low, opting for a flexi personal loan does have its benefits. A Flexi Personal Loan borrower can choose whether he wants to repay the loan as there is no restriction regarding prepayment, interest is charged from the borrower only on the amount borrowed and not the entire pre-approved flexi loan amount ( Full pre -approved flexi loan amount ), and the customer can choose to pay the EMI for interest only and then cover the principal amount.

How do I get the Flexi Personal Loan amount? How To pay EMI?

Flexi Personal Loan will be credited to your bank account. Actually, you can apply for Flexi Personal Loan from your net banking account. Since you need to be a pre-approved customer to avail Flexi Personal Loan , the money will be credited to the same account that you maintain with the bank or lender. You can pay EMI by setting up auto debit facility through your net banking account to schedule your payment every month.

Who can take Flexi Loan?

Any salary holder or a person having own business can take loan through this loan option. is

Above all, if you already have a loan, then it is important to have a good record and it is important to have a good CIBIL score.

Apart from this, the age, income, etc. of the loan applicant also play an important role in taking the loan.

Can one apply for Flexi Personal Loan?

To be eligible for a Flexi Personal Loan, the customer should have an existing relationship with the financial lender and be a pre-approved customer as each customer is offered a pre-approved limit that is He can choose to withdraw as a Flexi Personal Loan. Basically, a Flexi Personal Loan should be used in an emergency.

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