Personal Loan

Everything You Need to Know about Flexi Loans in India


In emergencies, a personal loan may be beneficial. It is a type of loan that is offered by both banks and other non-banking financial institutions. Due to the absence of collateral, this debt is among the most sought-after ones on the market, despite having high bond rates.

A personal loan with a predefined limit that the bank specifies is known as a “flexi loan.” You may take out money when you need it. Depending on your credit history, the lender determines the initial limit amount. A flexi personal loan might be useful for meeting your immediate monetary demands in an emergency.

What Exactly Are Flexi Loans?

A personal loan with a specified credit limit is a flexible loan. The bank will offer a pre-approved credit limit in the form of an overdraft facility and credit line based on your credit profile. The flex loan’s interest rate is only assessed on the amount you used, not the whole amount allowed.

The principal amount is refundable whenever you like. However, you must pay the interest each month. Anytime you have additional money, you may repay the loan. A flexi personal loan can be applied for by any salaried or self-employed individual to meet any financial needs.

What Is a Flexi Personal Loan and How Does It Work?

Overdraft services function similarly to the Flexi loan. When you apply for a Flexi personal loan, the bank determines the loan amount based on your credit score, income, and other characteristics, as well as your capacity to repay. Your account will receive money without any further paperwork or formalities. Within this loan limit, you may withdraw money as often and for whatever reason you choose. On the amount spent, interest is assessed. The remaining loan amount is not subject to interest payments.

Flexi Personal Loan Features and Benefits

The features and benefits of a Flexi Loan are as follows:

Liquid cash supply

You can always be prepared for any sudden financial demands with Flexi loans. The loan sum may be withdrawn as often as possible under the credit line granted.

Repayment Ease

Flexi personal loans are among the simplest to repay. This is because they guarantee that you take cash within the credit limit allowed. Thus, loan repayment is easy since you take cash as needed and pay just what your budget permits.

Free Prepayment in Parts

With no-cost prepayment, you may pay off your loan in instalments whenever you have extra cash, without any trouble or extra interest charges.

Several Withdrawals

Since the full loan sum is granted and paid at once, you may make as many withdrawals as you choose. There are no extra papers or costs for any withdrawals made after the payout.

Lower interest rates

Flexi loans can also help you lower your interest payments. The interest is calculated based on the sum withdrawn rather than the total amount approved by the lender. If a debt of Rs. 10 lakh is granted, but only Rs. 5 lakh is withdrawn, interest is charged only on the first Rs. 5 lakh. This also implies that EMIs are minimal, making loan payments simple.

Eligibility to Apply for a Flexi Personal Loan

Eligibility criteria between self-employed individuals and paid employees

Self-Employed Person

  • You must be of Indian origin.
  • Your CIBIL score should be 685 or above.
  • Your company’s (or your experience with freelancing) age should be at least three years.
  • It would be best if you were between the ages of 24 and 70. 

Paid Employees

  • You must be an Indian citizen residing in an Indian city.
  • Your CIBIL score should be 750 or above.
  • It would be best if you worked for a public, private, or multinational corporation.
  • It would be best if you were between the ages of 21 and 67.
  • All of the information above is general. Check with your bank for the specific qualifying conditions before applying. 

How Do You Apply for a Flexi Personal Loan?

The application process for a Flexi Personal Loan is as follows:

  • Go to the official site of the banking firm where you want to get the loan.
  • Select ‘Flexi Personal Loan’ from the drop-down menu. This choice is most likely to be found in the product section of your bank’s website.
  • Select the ‘Apply Now option.
  • Fill out the request form with the required information. Upload all the required papers.
  • After validating your application and papers, the bank will credit the money to your bank account. You may also apply for a Flexi loan at your nearest bank branch or banking firm. 

Things to Consider 

When you need money, getting a flexi personal loan is a good alternative. However, there are a few things to keep in mind before applying for the loan:

Interest Rate:  Even though the interest rate is only applied to the loan amount you borrow, you should be sure to verify and compare the interest rates provided by different lenders.

Other Fees: Although the majority of lenders that provide flexible personal loans don’t impose a prepayment fee, you should verify the other fees assessed by the lender since they may have an impact on the loan’s cost.

Examine Your Repayment Capacity: Although the amount you will have to return will depend on how much of the authorised loan amount you withdraw, you should make sure to evaluate your repayment capacity before accepting the loan. Make sure you have the money to pay off your EMIs since missing payments might hurt your credit.

Trustworthiness of the Lender: It is essential to get loans from reputable lenders. Ensure the lender is trustworthy by carefully examining the customer service options, online reviews, the lender’s reaction time to your inquiries, etc.


When you are approved for a Flexi loan, your lender sets a loan amount cap after evaluating your creditworthiness. You have access to this credit limit via a Flexi personal loan.

You may withdraw money as often as necessary within the acceptable credit limit. Only the amount of your withdrawal will be subject to interest. There is no interest to be paid on the unused part of the credit limit.

Visit Piramal Finance for related posts if you want to learn more about Flexi personal loans. You may look at their offerings as well.