Personal Loan

What is a Flexi Personal Loan? How Does it Work? 


Facing a financial emergency can be very daunting. In such times, accessing funds at the last minute can become very difficult. For ease during such a situation, various types of loans are available. However, the process can be tiring if you do not know the amount you need.

Loans like a flexi loan can be relied upon to meet your financial needs. As you can predict from its name, a flexi loan has excellent flexibility. The flexibility makes this type of loan an ideal choice for many.

However, what exactly is a flexi personal loan?

What is a flexi personal loan?

A flexible personal loan, or a flexi personal loan is a loan that allows you flexibility on how much you can borrow. A flexi loan usually comes with a pre-approved credit limit. This credit limit is decided by the financial institution that grants the loan, and the loan limit is determined individually for each application.

You can borrow any amount until you reach this credit limit. Since these are types of personal loans, you can use the money to pay your debts, fund a vacation, or meet other expenses.

Like other loans, you will have to pay interest on the loan. This fixed interest amount is decided based on the principal amount and other factors. Some factors that affect your eligibility for a loan include your income, credibility, CIBIL score, etc. You get benefits like the freedom to withdraw any amount, low interest applicable on the consumed amount, prepayment without any extra charges, etc.

Features of a flexi loan

If you are considering applying for a flexi personal loan, you must know the features:

  • A flexi personal loan usually has no restrictions regarding end-use. You can use the money for any expense. 
  • The loaned amount can be paid at your convenience; however, the interest amount must be paid every month. 
  • Flexi personal loans differ from lender to lender. You based on factors like CIBIL score and loan tenure. 

How does a flexi personal loan work?

If you need money, you can undoubtedly apply for a flexi loan. Before applying for a flexi personal loan, check your CIBIL score. Most lenders have a minimum CIBIL score requirement. Once you have checked your CIBIL score, you can contact a lender.

You will have to provide proof of income, address, identity, and other similar documents. Provided you meet the eligibility criteria, you will receive the principal amount. Once you get the loan, your interest charges will be calculated only on the used amount.

Why should you get a flexi personal loan?

A personal flexi loan is the best financial support you can get if the situation has flexible monetary demands. However, it is advisable to understand your needs beforehand. Because, in most cases, people take a personal loan for instant and non-necessary expenses.

There are a few advantages to flexi personal loans that make them attractive options.

  • You can receive instant loans if you meet the eligibility criteria.
  • You can get the loan amount you need. A flexi loan allows you to repay at your convenience. 
  • The interest rates are applied only to the amount you spend. This makes flexi personal loans affordable. 
  • Flexi personal loans could be withdrawn based on your needs. So, you need not use all the principal amount.

What is the interest rate?

The interest rate on loans is one of the major deciding factors. Flexi loan interest rates range from 12% p.a. to 28% p.a. Another thing to remember is that you might have to pay more if your tenure period is longer. Interest rates are decided based on your creditworthiness and income.

Eligibility criteria 

There is no doubt that each loaning institute has a different criterion. Thus, you have to understand the eligibility criteria before applying:

  • You must be an Indian citizen to be eligible for flexible loans.
  • For salaried applicants, your age must be between 21 and 70 years old, and for self-employed applicants, your age must be between 23 and 70 years old.
  • Salaried applicants can work in the private sector, public sector, government institutions, or related companies, such as proprietorships, partnership firms, NGOs, or other organizations.
  • If you are self-employed, you can be a business owner, partner, proprietor, member of a partnership firm, or self-employed professional like a doctor, architect, etc.

Documents required for flexi personal loans

The documents required may vary from lender to lender. You have to provide the following documents with your application form.

  • Identity proof (PAN card, Aadhar card, or passport) must be provided.
  • You will have to provide your Aadhar card, voter ID, and utility bills as your address proof.
  • You will also have to provide 3 to 6 months’ salary slips as income proof. 
  • Self-employed professionals will have to submit bank statements to prove their income.

You can be asked for additional documents based on your application. It is recommended to provide them with a swift approval experience.


If you are considering applying for a flexi loan, know that the procedure is straightforward. A flexi personal loan is a viable option if you need a loan with a flexible borrowing amount and repayment period.

Piramal Finance can be of great help if you’re unsure where to start. They have an experienced team to help you with flexi personal loan-related needs. If you wish to read more such blogs about personal loans and financiers, visit the official website of Piramal Finance to learn more.