A flexi personal loan offers you a pre-approved cash limit, which can be withdrawn whenever you are in need of funds. Most lenders charge reasonable interest rates for flexi personal loans and offer flexible repayment terms.
The key benefit of borrowing a flexi personal loan is that lenders only charge interest on the actual sum that you borrow and not the entire approved loan amount, thus reducing the total interest that you will have to pay to the lender. Further, repayments are flexible, given that you can make as many prepayments as you wish to during the loan repayment tenure.
Listed below is the step-by-step process to apply for a flexi personal loan online:
Alternatively, you can directly visit the closest branch of a bank or financial institution and apply for a flexi personal loan.
While borrowing a flexi personal loan may seem like a viable option when you are in need of funds, there are a few points that you should consider before applying for the loan:
To calculate their repayment through monthly installments, flexi personal loan borrowers can calculate their EMIs using the Flexi personal loan EMI calculator. For the calculation, one should enter the loan amount he/she wishes to avail and the possible interest rate.
Let’s assume that Mr. Ram wishes to avail a pre-approved flexi loan of Rs.50,000 for a repayment tenure of 1 year. The lender sets an interest rate of 10.25% and a processing fee of 2% of the loan amount. To repay the loan, Mr. Ram will have to pay an EMI of Rs.4,401 for a duration of 1 year.
|Month||Principal Paid(A)||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance|
|1||Rs. 3,975||Rs. 427||Rs. 4,402||Rs. 46,025|
|2||Rs. 4,008||Rs. 393||Rs. 4,401||Rs. 42,017|
|3||Rs. 4,043||Rs. 359||Rs. 4,402||Rs. 37,974|
|4||Rs. 4,077||Rs. 324||Rs. 4,401||Rs. 33,897|
|5||Rs. 4,112||Rs. 290||Rs. 4,402||Rs. 29,785|
|6||Rs. 4,147||Rs. 254||Rs. 4,401||Rs. 25,638|
|7||Rs. 4,183||Rs. 219||Rs. 4,402||Rs. 21,455|
|8||Rs. 4,218||Rs. 183||Rs. 4,401||Rs. 17,237|
|9||Rs. 4,254||Rs. 147||Rs. 4,401||Rs. 12,982|
|10||Rs. 4,291||Rs. 111||Rs. 4,402||Rs. 8,692|
|11||Rs. 4,327||Rs. 74||Rs. 4,401||Rs. 4,364|
|12||Rs. 4,364||Rs. 37||Rs. 4,401||`|
Based on the purpose for which you require funds, you can either borrow a term loan or a flexi personal loan. Let us look at the differences between these two loan solutions:
|Parameters||Term Loan||Flexi Personal Loan|
|Nature of the loan||The entire loan amount is disbursed to your account||The loan amount can be withdrawn in instalments|
|Interest Rate||Interest is charged on the whole loan amount||Interest is charged only on the withdrawn sum|
|EMI Payments||A structured and fixed EMI payment schedule is provided||EMI payments will vary based on the amount that is withdrawn by the borrower|
|Pre-Payment Charge||Most lenders charge a pre-payment fee||No pre-payment fee is charged|
|Accessibility||Most lenders offer term loans||Not all lenders offer flexi personal loans|
Flexi personal loans are a good option for individuals who are not certain about their funding requirement since you can withdraw as much as you require during times of need. Also, flexi personal loans are more affordable since the interest is only charged on the loan amount that you actually withdraw, thus cutting your payable EMI significantly.
While a regular personal loan has a set repayment schedule and the interest rate could be lower, opting for a flexi personal loan does have its benefits. A flexi personal loan borrower can choose how he/she wishes to repay the loan as there are no restrictions with regard to pre-payments, the borrower is charged interest only on the borrowed sum and not on the entire pre-approved flexi loan amount, and customers can choose to pay EMIs only for the interest and then cover the principal amount.
No, flexi personal loan is like a personal loan product with certain variations, and it is unsecured as well, meaning that there will be need for the provision of collateral.
To be eligible for a flexi personal loan, the customer has to have an existing relationship with the financial lender and should be a pre-approved customer as every customer is offered a pre-approved limit he/she can choose to withdraw as the flexi personal loan. Basically, a flexi personal loan should be used in the case of an emergency.
Contact the bank you have a relationship and check the eligibility criteria of the flexi personal loan on offer. Check details such as minimum income requirement, age, and all other factors.
The flexi personal loan will be credited to your bank account. In fact, you can apply for a flexi personal loan from your net banking account. Since to avail a flexi personal loan you need to be a pre-approved customer, the money will be credited to that very same account you hold with the bank or lender. You can pay the EMIs by setting up the auto debit facility through your net banking account to schedule your payments every month.
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