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Flexi Loan 2022

Flexi Personal Loan

Last Updated 22nd Jan 2022

  • A Flexi personal loan is offered by banks and NBFCs whereby you can avail the flexibility of withdrawing money as and when required.
  • The amount withdrawn during the loan tenure must be within the limit of the amount pre-approved by the lender.
  • Minimal documentation is required for disbursal of the loan such as ID proof, address proof, income proof, etc.
  • The amount withdrawn can be repaid as EMIs.
  • You can apply for hybrid flexi loan online through the website of the lender or with MyLoanCare for instant approval and quick disbursal of the loan amount.
  • Flexi loan providers in India are Bajaj Finsev, ICICI Bank, Tata Capital, Axis Bank etc
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What is Flexi Loan?

Flexi Loan meaning is a personal loan that comes with a pre-approved loan limit from which any amount can be withdrawn as and when the requirement arises. With a Flexi Loan, you can withdraw the required amount as many times as you want, provided you stay within the credit limit. It, thus, enables you to get easy access to funds at a time of financial emergency.

In a Flexi loan, interest rate is charged only on the amount withdrawn and not on the pre-approved loan amount. You can repay the loan in EMIs calculated on the withdrawn amount only. The loan can be closed before the tenure ends by prepaying the outstanding debt, in case you have extra funds. Thus, you can enjoy the flexibility in terms of cash withdrawal as well as loan repayment.

Features and Benefits of Flexi Loan

Some of the benefits and features of Flexi personal loan are mentioned below.

  • Easy access to funds: Hybrid Flexi loans allow you to withdraw money as and when needed within the pre-approved limit, thus, helping you get easy access to funds in case of a financial crisis.
  • Flexible repayment: The loan makes repayment easier as you can borrow the amount that you can afford to repay. Moreover, when you have access to funds, you can pre-close, meaning you can repay the entire borrowed amount before the end of loan tenure with zero foreclosurek charge. In this way, you can save on the overall interest payment.
  • Multiple withdrawals: You can withdraw money under the Flexi loan any number of times within the prescribed credit limit. In case you face an urgent need for cash after prepaying the borrowed amount, you can withdraw the amount needed within the overdraft limit. Thus, you can save yourself from the hassle of applying for new loans as well.
  • Requires minimal documentation: Minimal documentation is required to avail the loan as it is pre-approved, which makes the process less time-consuming and hassle-free.
  • Lower interest rates: While repaying this loan, you need to pay interest only on the amount withdrawn and not on the amount sanctioned by your lender. It not only implies a lower interest payment but also reduces the EMIs to be paid.

Interest Rates on Personal Flexi Loan

Flexi Loan Interest Rate
Bajaj Finserv14.00 %
Tata Capital13.99 %

Flexi Loan Eligibility Criteria

Both salaried employees and self-employed individuals can apply for the loan. The eligibility criteria for getting this loan varies from one lender to another. However, some of the common eligibility criteria are listed below:

Flexi loan for salaried employees

Salaried individuals are required to fulfill these criteria:

  • Must be a citizen of India
  • Must be of age between 25-55 years.
  • Must be a salaried employee of a public sector establishment or private company or an MNC.

Flexi loan for self-employed individuals

Self-employed are required to fulfill these criteria:

  • Must have a business establishment of at least three years.
  • The business must have fled for one income tax return at least for the past year.
  • Must be between 25 - 55 years old.
  • Must be a citizen of India.

Documents Required for Flexi Personal Loan

A Flexi personal loan requires minimum documentation. You have required the following set of documents:-

  • KYC documents such as Aadhar card, voter ID, passport, photograph, etc.
  • Latest salary slip or Form 16
  • Bank statements of the last six months
  • Certificate of business existence
  • Relevant business financial documents

How to Apply For Flexi Personal Loan?

All Indian residents, both salaried individuals and self-employed, can get Flexi hybrid loans if they meet certain eligibility criteria. To apply for a flexi loan online, follow these steps:

  • Visit the website of your chosen lender, fill the required details in the online form and submit.
  • Select your desired loan amount and tenure to get instant approval.
  • Submit the necessary documents either online (if the option is available) or to the representative of your lender when he/she gets in touch with you.
  • After successful document verification, the approved amount will be credited to your loan account. You can withdraw funds according to your needs and transfer it to your savings account within two hours.

Difference Between Term Loan & Flexi Loans

The standard term loan differs from the hybrid flexi personal loan. The distinction between the two is listed as follows:

Term Loan Flexi Loans
Term loan is approved by lenders for lump sum use at once upon disbursal. The entire sanctioned amount is disbursed to the bank account on loan approval. In Flexi loans, only the amount needed can be withdrawn and is credited to your account. You must remain within the limit of the sanctioned loan amount.
Usually, term loans take time to get approved as it requires tedious documentation and verification process. You can get instant approval on Flexi loans with the disbursal of the desired amount within 24 hours in most cases. Most lenders also offer online approval and disbursal of loan.
In a term loan, interest is applicable to the entire sanctioned amount. In a Flexi loan, interest is applied only on the amount withdrawn by the borrower and not on the entire sanctioned amount.

FAQs

How can you repay your flexi personal loan amount?

The personal loan amount that you have borrowed can be repaid via monthly EMIs. If you have a Flexi personal loan, you just need to repay the amount withdrawn and not the amount sanctioned by the lender. You can also opt for a prepayment option whereby you can foreclose the loan by repaying the entire amount before the tenure ends. No pre-closure charges will be levied in that case.

What should you opt for - Standard EMI plan or Flexi EMI planers?

Under the Standard EMI plan, you have to pay a pre-fixed EMI every month till the entire loan gets repaid. Flexi EMI plan, however, allows you to choose to pay a lower EMI initially and gradually start paying a higher EMI as your income increases. Thus, it is better to opt for Flexi EMI plan than Standard EMI plan as then you can repay the personal loan according to your availability of funds.

How can I withdraw money from Flexi Loan?

You can withdraw the required amount of money from your Flexi loan account any time you want. There is no limit on the number of times you can withdraw funds from the loan account. You only have to make sure that you withdraw an amount within the credit limit approved by your lender.

How do I convert a loan to a flexi loan?

You can easily convert your personal loan into a flexi loan by contacting your lender. Most of the lenders convert the loan at the same interest rate, however check with your lender for the same. You will be able to enjoy benefits like lower EMI’s, pay interest to what you use and much more.

Can I reduce my flexi loan limit?

You cannot reduce your flexi loan limit. But no interest rate will be charged on the amount which is unused. So, if you do not use the whole loan amount then you do not have to worry about the extra charges.

Are flexi personal loans advisable?

Flexi personal loan is a good option as you can manage your finances with flexibility and some lenders also offer instant flexi loans. Flexi financing comes with benefits like lower EMI’s, flexible repayment of loan in parts, loan amount disbursed instantly, requires minimal documentation etc.

What is the interest rates charged on Flexi Loans?

The interest rate charged on flexi personal loans ranges between 13.99%- 15.25%. Currently, Tata Capital offers the lowest flexi loan among other top lender offering this loan.

How Can You Calculate the Interest Rate on Personal Flexi Loan?

Interest rate on personal flexi loan is calculated on the basis of borrowers eligibility. Factors which are considered to decide interest rate is age, income, employment type.

What is the Maximum Tenure for Flexi Loan?

Flexi loan tenure may vary across all lenders. However, in general it ranged between 12 months to 60 months.

Which Bank & NBFC Provide Flexi Personal Loans?

Flexi loans are offered by some top banks and NBFcs. Some of these are Bajaj Finserv and Tata Capital.

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