What is Flexi Personal Loan ? How to Apply and Features & Benefits
In times of financial need, a personal loan can be a reliable solution to meet your expenses. However, traditionally these loans often come with fixed repayment terms. It may not be the most convenient option for everyone. That’s where flexi personal loans come into play. This loan offers borrowers greater flexibility in managing their finances and repayment.
What is a Flexi Personal Loan?
It’s a loan that provides borrowers with the freedom to withdraw and repay funds within a pre-approved credit limit. Unlike traditional loans, which offer a lump sum amount at the beginning of the loan tenure, it allows borrowers to withdraw funds as per their requirements. The interest is charged only on the amount utilized and for the duration of its usage. This flexible structure enables borrowers to have greater control over their finances. It’s an attractive option for managing unpredictable or varying expenses. You can also maintain it as a permanent credit backup for all your needs.
Features and Benefits of Flexi Personal Loans:
- Flexible withdrawals:With this loan, you can withdraw funds from your approved credit limit whenever you need them. This allows you to manage unexpected and recurring expenses without applying for multiple loans.
- Pay interest only on utilized amount:One of the key benefits of this loan is that you pay interest only on the amount you withdraw and for the duration it remains unpaid. This can result in significant savings. It’s not possible with any other loan loans where interest accrues on the entire loan amount from the beginning irrespective of the usage.
- Repayment flexibility:This loan offers flexibility in repayment as well. You can choose to repay the borrowed amount in full or make partial repayments as per your financial situation. If you are comfortable with fixed EMIs you can choose that option as well for a disciplined repayment. This loan gives you the choice of your comfort for using and repaying the loan sum.
- No prepayment charges:This loan comes with no prepayment or foreclosure charges on full repayment of the loan. It means you can repay the loan before the tenure ends without incurring any extra fees, thereby saving on interest costs.
- Improved cash flow management:With the flexibility that comes with this loan, you can effectively manage your cash flow. You can utilize the loan amount when needed and repay it when your financial situation allows.
Why Should I Choose a Flexi Personal Loan Over a Traditional Loan?
With a flex loan, you have the advantage of flexible fund utilization. It allows you to withdraw money as needed from a pre-approved credit limit unlike a traditional loan providing total sum upfront. Since you pay the interest only on the used portion of this loan you save a lot on interest in a flexi loan. It offers repayment flexibility, enabling you to make partial repayments or convert the outstanding balance into fixed EMIs. This ensures better cash flow management and the ability to pay off the loan sooner.
How to Apply for a Flexi Personal Loan?
- Registration and application:The registration begins with entering your name, contact and PAN details. It continues to complete the application by entering your income, and occupational details. You also have to enter the sum needed in this stage to see how much you are approved for.
- Documentation:FlexSalary only takes minimal documentation that too in a 100% digital process. It includes proof of identity, address, income, and employment details. You can complete it by uploading copies of your Aadhar card, PAN card, Salary slips, Bank statements and one photograph. Make sure to have all the documents ready in order to expedite the application process.
- Verification and Approval:After submission of all the documents, we verify the provided information and documents. This may involve contacting your employer, conducting credit checks, and assessing your repayment capacity. To see the creditworthiness of all the documents e-KYC is completed. Once the verification is done, you will receive a loan approval decision.
- Loan Disbursement:After successful verification your loan application is approved. We will disburse the approved loan amount to your designated bank account. The funds will be available for you to utilize as per your needs.
FlexSalary line of credit offers you a versatile and convenient financial solution with unique features and benefits. With the ability to withdraw funds as needed from a pre-approved credit limit, you gain greater control over your finances. It helps you effectively manage unpredictable or varying expenses. The option to pay interest only on the utilized amount and for the duration of it remaining unpaid can result in significant interest savings.
We impose no fixed EMI mandatorily and you can opt for whether flexible repayment or a regular instalment every month. The repayment tenure lies between 10-36 months during which you can repay anytime. As long as you are paying minimum monthly dues no penalties or late payment charges are applied. You can keep on using this loan and renew your credit limit based on your credit health and repayment history.