A financial crisis may not be predicted in time. You may have an urgent need for cash but may not have cash in hand. In such a case, your first response may be to turn to a Flexi personal loan that you will have to repay later with a personal loan interest.
Flexi personal loans are a type of instant personal loan. Just like other personal loans, there is no restriction on the purpose of loan amount usage. The lenders have a pre-approved limit for these loans and the personal loan interest rates are also flexible and moderate.
But, you must be thinking about how a Flexi personal loan works. Well, it will offer you an overdraft facility. With this, you can withdraw the required amount that has to be within the credit sanctioned to you. A personal loan may be a nice option for you if you are someone who wants to improve your spending habits. With Flexi loans, you will not be spending more than required as it is an overdraft facility. You can withdraw funds as many times as you want up till the total credit limit.
Read this article to learn about how a Flexi personal loan is better than a normal personal loan. Furthermore, we will be discussing the Flexi loan calculator for interest.
Is A Flexi Personal Loan Better Than A Traditional Personal Loan?
While you are the judge of what suits your needs better, here are certain points that will help you decide between the two:
- Flexi personal loans offer you flexible repayment terms. You may opt for interest-only repayments that are not available in the case of a conventional personal loan. This helps you save a portion of your monthly income that would have otherwise gone towards EMI payments.
- A personal loan tenure is fixed along with the interest rate and principal repayment. When you take a Flexi loan, you pay the personal loan interest only on the amount that you have used, not on the total amount that has been sanctioned. This makes payments more reasonable. You also have the option to make part interest payments when you have a surplus of funds.
- In the case of a traditional loan, you will get the amount sanctioned in one go. In Flexi personal loans, you enjoy an overdraft facility. This will help you in spending the amount that you need, not anything extra.
Why Should You Get A Flexi Loan?
Given below are the reasons why it would be wise for you to avail of a Flexi loan:
- You get quick access to the funds. Hence, it is very useful during an emergency.
- There may not be much documentation required to sanction a loan.
- You have to pay interest every month; however, the principal amount can be paid whenever you have surplus funds.
Concept Of A Flexi Loan Calculator
A Flexi loan EMI calculator is a tool that helps you calculate the interest amount due on your Flexi loan. Flexi personal loan interest is only charged on the amount that you use, and you can repay the principal amount any time as long as it is during the loan tenure. For example, the total Flexi loan amount is Rs. 8 lakh but you have used only Rs. 3 lakh. So, the interest will be payable on Rs. 3 lakh only. In the case of a personal loan, you will not get any such advantage.
How Can You Calculate Your Daily Flexi Personal Loan Interest?
It is very simple to determine your Flexi personal loan interest using an online calculator. You will only be needed to enter certain details about your loan and the calculator will give you the interest payable.
Let’s understand the Flexi loan EMI calculator better. You will need to put in the following information in the online calculator:
- The total loan amount that you can borrow up to.
- The total loan amount you have used up to the respective calculation date.
- The Flexi personal loan interest rate applies to your loan.
- You may be required to enter a date up to which you want the interest to be calculated.
Steps To Use A Flexi Loan Calculator
To calculate the daily interest amount on your Flexi loan through a Flexi loan calculator, you have to follow these steps:
Step 1: Open the Flexi loan EMI calculator that you will be using.
Step 2: Enter the total loan amount sanctioned.
Step 3: Enter the loan amount used up to the date asked by the calculator.
Step 4: Enter the interest rate applicable.
Step 5: You will get a table displaying the daily interest amount between the two dates you have entered. If you have made any withdrawals in between, you can enter those in the calculator as well. The Flexi loan calculator will calculate the new interest amount, based on those withdrawals, and give you the daily as well as total interest.
A major benefit of Flexi personal loans that can be taken into account is that you do not have to provide any collateral security, thereby reducing the risk of losing your assets. Many lenders would also help you save on interest rates by charging a moderate interest rate.
Additionally, these loans are available to both self-employed and salaried individuals but the eligibility criteria may differ. The eligibility criteria would vary from one lender to another. Furthermore, with the need for minimal documentation, you would only have to submit the main documents like your identity proof (Aadhaar card, Voter ID card or Passport), address proof (utility bills or other documents) and income proof (salary slips or bank statements).
Now, if you are willing to avail a Flexi personal loan, visit Piramal Finance and apply for one today!