• Flexi Personal Loan

    A flexi personal loan offers you a pre-approved cash limit, which can be withdrawn whenever you are in need of funds.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.

    Features and Benefits of Flexi Personal Loans or FlexiCash

    • Availability of Liquid Cash: When you borrow a flexi personal loan, you have liquid cash available to you at all times since you will be able to withdraw multiple times from your loan balance.
    • Reasonable Interest Rate: The interest rate charged for flexi personal loans is very reasonable. Also, it is important to note that you will only have to pay interest on the sum that you actually withdraw from your loan balance. Further, a number of lenders that offer flexi personal loans charge the interest on a daily basis.
    • No Prepayment Charges: In the case of flexi personal loans, you can prepay the loan amount as and when it is convenient for you, without having to pay a prepayment charge.
    • Online Applications: A number of banks and financial institutions will allow you to apply for a loan online through their official website.
    • No Collateral/Security Required: You can borrow a flexi personal loan from a lender without having to submit any collateral or security.
    • Multi-Purpose Loans: Lenders who offer flexi personal loans do not specify any restrictions with regard to how you can use the disbursed loan amount. You can, thus, borrow a flexi personal loan to pay for emergency healthcare expenses, fund your travel plans, etc.

    Eligibility Criteria for Flexi Personal Loans

    • Age: 22 to 58 years
    • Salaried employee and should be employed at an MNC, a public sector firm, or a private sector firm.
    • Should be a Citizen of India.
    • Work experience of at least one year.
    • Working for the same employer for at least 6 months, if not more.
    • Income at least Rs.15,000 per month.

    Documents Required to Avail a Flexi Personal Loan

    • Valid Photo Identity Proof: You can submit your Passport, Driving Licence, Voter ID, or Aadhaar card.
    • Proof of Income: You can submit the bank statements of the last six months.
    • Proof of Address: You can submit a copy of your Utility bills, Ration card, or Passport.
    • Employment/Experience Certificate: You will need to submit a certificate stating you have at least one year of continuous work experience.
    • Salary slips of the last three months

    How to Apply for a Flexi Personal Loan

    Listed below is the step-by-step process to apply for a flexi personal loan online:

    1. Visit the lender’s official website.
    2. Click on ‘Flexi Personal Loan’. It is likely that you will find this option under the ‘Products’ tab on the lender’s website.
    3. Once you are on the Flexi Personal Loan webpage, you will need to click on ‘Apply Now’.
    4. On the redirected page, you will need to key in all the required details and submit the application form.
    5. Certain lenders will allow you to upload the required documents online through their portal, while others will have a representative get in touch with you to take the process forward.
    6. Once your application and documents are verified by the lender, the loan amount will be credited to your account.

    Alternatively, you can directly visit the closest branch of a bank or financial institution and apply for a flexi personal loan.

    Things to Consider

    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:

    • Interest Rate: Although the interest rate is only charged on the loan amount that you borrow, you should ensure that you check and compare interest rates quoted by various lenders.
    • Other Charges: While most lenders who offer flexi personal loans don’t charge a pre-payment fee, you should still check the other fees and charges levied by the lender, given that these charges can affect the cost of the loan.
    • Assess Your Repayment Ability: Although the amount that you will need to repay will vary based on how much you withdraw from your approved loan amount, you should ensure that you check your repayment ability before taking the loan. Ensure that you have the means to repay EMIs since defaulting on EMI payments can affect your credit score.
    • Reliability of the Lender: It is important to borrow loans from authorised lenders. Ensure that you check how reliable the lender is by checking the customer care channels offered, online review, promptness in solving your queries, etc.

    Flexi Personal Loan EMI Calculator

    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 `

    Flexi Loan Vs. Term Loan

    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.


    1. Why should I choose to opt for flexi personal loan rather than a normal personal loan?
    2. 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.

    3. Do I need to submit collateral to avail a flexi personal loan?
    4. 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.

    5. Can anyone apply for a flexi personal loan?
    6. 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.

    7. How will I know if I am eligible for a flexi personal loan?
    8. 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.

    9. How will I receive the flexi personal loan amount? How can I pay the EMIs?
    10. 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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