A personal loan might be useful in times of crisis. It is a loan product that is provided by banks as well as other non-banking economic firms. Despite its high bond yields, it is among the most sought-after debts on the market due to its lack of collateral.
A Flexi loan is a form of personal loan with a predetermined limit specified by the bank. You can withdraw funds as needed from this. The lender sets the starting limit sum depending on your credit record. The Flexi personal loan might help you fulfil instant cash needs in a crisis.
What exactly are Flexi loans?
A Flexi loan is a personal credit with a preset credit limit. Based on your credit profile, the bank will issue a pre-approved money limit in the type of credit line and overdraft facility. The interest rate on a Flexi loan is levied only on the sum you utilised, not the whole approved sum.
You may refund the main sum whenever you wish. Yet, you must pay off the interest monthly. You may also pay off the loan anytime you have extra cash. A Flexi personal loan may be secured by any salaried and self-employed person and used to cover any fiscal demands.
What is the Flexi personal loan and how does It work?
The Flexi loan acts similarly to overdraft services. When you ask for the Flexi personal loan, a bank decides the loan sum based on your ability to repay, income, credit score, and other factors.
Money will be deposited into your account without the need for further paperwork or formality. You may withdraw funds within this loan limit for any cause and as many instances as you pick. Interest is imposed on the sum spent. There is no interest payable on the left loan balance.
You may apply for a Flexi personal loan whether you’re self-employed or employed.
Flexi personal loan features and benefits
- Liquid cash supply
You can always be prepared for any sudden financial demands with Flexi loans. The loan sum is accepted under this sort of loan, and you may withdraw it as many instances as you like under the credit line granted.
- Repayment ease
Flexi loans are among the simplest to repay. 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 part
With this no-cost prepayment choice, 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 10 lakh is granted, but only 5 lakh is withdrawn, interest is charged only on the first 5 lakh. This also implies that EMIs are minimal, making loan payments simple.
Eligibility for applying for a Flexi personal loan
- You must be of Indian origin.
- Your CIBIL score should be 685 or above.
- Your company’s age should be at least three years.
- It is best if you are between the age of 24 and 70.
- Your employment status should be self-employed.
Employees that are paid
- 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 work for a public, private, or multinational corporation.
- It is best if you are between the ages of 21 and 67.
- Your wage is decided by the city in which you live.
All of the information in this part is general. Please verify your bank’s website for the specific qualifying conditions before applying.
How Should You Get a Flexi Loan?
The processes for applying for a Flexi personal loan are 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 requested information.
- Upload all 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.
What exactly is the Flexi loan EMI calculator?
The Flexi loan EMI calculators are the tools that calculate the interest you must pay on the loan sum you use. The Flexi loan represents an unsecured loan with a predetermined limit that you may use to cover financial crises.
The loan sum may be returned at any time, depending on the duration you choose. You are just obliged to pay the rate of interest as the EMI. One of the tempting perks of this loan is that the interest is paid only on the loan sum you use. For example, if the Flexi loan maximum is 7 lakh and you use just Rs. 2.5 lakh, the interest is due only on the used amount (2.5 lakh) and not the whole amount (7 lakhs).
How does a Flexi personal loan EMI estimator function?
A Flexi loan EMI calculator considers the loan sum as well as the interest rate imposed by the bank. For example, if you obtain a loan of INR 10 lakhs at a rate of 13.25%, you would have to pay a total interest of INR 11,042 monthly. This sort of loan pays the interest sum as your EMI amount in the first year. The Flexi loan EMI calculator is easy to use. All you need to do is input the loan sum and rate of interest into the relevant section. The tool will then reveal the quantity of interest.
Flexible personal loans might be useful during a financial emergency. You must have a decent credit score to be eligible. Keep your paperwork close at hand to expedite the procedure. Compare and contrast the interest rates of different lenders.
If you want to learn more about Flexi personal loans, visit Piramal Finance and explore their products and services.