Unexpected monetary emergencies are something that all of us are familiar with, and we all know that they may appear out of nowhere. If you are not well prepared to deal with it, then it might cause a major hole in your financial resources. Any of us can fall victim to it. Not everyone is ready to deal with such situations, and the majority of the time, you will be required to use credit to meet the expenses associated with the emergency.
The fact that some financial institutions and banks will give you a personal loan despite your difficult circumstances is a positive thing. A Flexi Personal loan is a type of personal loan that is different from standard personal loans. The amount of the loan is made available to you in the form of a personal line of credit, as opposed to the standard personal loan.
What is a Flexi Personal Loan?
A Flexi Personal loan gives the borrower the ability to get their hands on funds in a hurry. It comes with a credit limit that has already been approved for you, which you are free to use for whatever, whenever you feel the need.
What kinds of benefits does the Flexi Personal Loan offer?
- You can apply for Flexi Personal loans online from the comfort of your own home, and the money will be in your bank account after you apply.
- You can use the loan for any legal purpose, such as a wedding, party, home improvement, furniture, etc.
- The loan’s interest rate varies from lender to lender and depends on things like the loan amount, the borrower’s credit score, how long the loan is for, etc.
- Since Flexi loans are unsecured, the borrower does not have to put up any collateral or security.
- Loans can be paid back whenever the borrower wants. Even though you have to pay the interest rates every month.
- Since the lenders don’t charge any fees for these loans, the people who take them out can pay them back whenever they want.
- Flexi Personal loans have fixed EMIs because the interest rate is fixed. This makes it easy for the borrower to pay back the loan.
How does the Flexi Personal Loan work?
Flexi Personal Loans work in a way that is very similar to how an overdraft facility works. The customers will get a credit line that has already been approved by the lenders. Also, the pre-approved limit is different for each borrower and depends on things like their ability to pay back the loan, their credit score, their income, where they live, and so on.
If you need money right away, you can get a Flexi Personal loan and have the money put into your bank account without having to do any extra paperwork or go through any procedures. Interest fees are only charged on the amount that was used. For example, if you have a Flexi Loan with a maximum limit of INR 5 Lakhs but only take out INR 3 Lakhs, you will only be charged interest on the INR 3 Lakhs you still owe on the loan.
What are the Things You Need to Know Before Applying for Flexi Personal Loan?
- Trustworthiness of the Lender:
Before you apply for a loan, you should find out if the lender is reliable enough. Since the process can now be done online, there have been a lot of scams and fraudulent activities. So, you should do some research first, then compare lenders based on things like interest rates, reviews, benefits, etc., and then choose a lender.
- Interest Rate:
When applying for a Flexi loan, the interest rate is one of the most important things to look at. This is because the interest rate on Flexi loans is high. Most of the time, it’s between 12% p.a. to 28% p.a. If you have to pay back your loan over 4-5 years, you find yourself paying a lot more than the original loan amount.
- Apply only if necessary:
Don’t try to get a Flexi loan if you don’t have to. If you buy the loan because you’re tempted by something, it will be extremely difficult to repay it. Apply for a Flexi personal loan only if you need the money and don’t have any other way to get it.
- Other Charges
Since lenders don’t charge prepayment fees, you’ll have to pay several other fees, such as processing fees, late payment fees, etc., that you should think about before taking out a loan.
What are the Eligibility Criteria to be followed while applying for a Flexi Personal Loan?
Here are the eligibility criteria that need to be followed for a Flexi Personal loan.
- You should be an Indian citizen living in one of the places where the lender offers the Flexi Personal Loan
- You should be between the ages of 21 and 58.
- You should have a monthly income of at least INR 15,000.
- A minimum of one year of work experience is required.
- At the very least, you should stay with the same employer for six months.
- To qualify, you must be a salaried employee of a multinational corporation, a public sector or a private sector company.
What are the various documents required?
- For salaried workers, you’ll need the following documents.
- Proof of Identity: AADHAR Card, PAN Card, Driver’s License, or Passport
- Proof of Address: Passport, electricity bill, water bill
- Proof of Income: Bank statement for the past six months (salaried)
- Work Experience Employment: Certificate for 1-year experience
If you need money quickly, the best thing to do is apply for a Flexi Personal loan. A flexi personal loan can be helpful in several situations, like paying for a wedding or making home renovations. If you’ve read this whole article, you should have a good idea of what you need to know before applying for a Flexi Personal Loan.
If you have questions or don’t know where to start, you should talk to a financial expert like Piramal Finance to get loan options that fit your needs.