Personal Loan

What is the Difference Between a Personal Loan and a Flexi-Hybrid Loan?


Are you looking for a personal loan for your individual needs? Then, you have landed in the right place. A personal loan and a Flexi-hybrid loan fall under the same category as personal loans. Yet, there are differences between the two: Eligibility criteria, accessibility, disbursal process, and repayment procedure.

Read on to learn the difference between a personal loan and a Flexi-hybrid loan to decide which option is better for you. In the end, you will find the eligibility criteria to apply for a hassle-free personal loan at Piramal Finance.

Personal Loan vs. Flexi Hybrid Loan

The six points of comparison between a personal loan and a Flexi hybrid loan are listed below:

Nature of the loan

A personal loan is an unsecured loan that a financial institution offers. Once the borrower meets the loan eligibility, the lender sanctions the loan. Then the lender disburses the loan amount into the registered account of the borrower. After that, the borrower can use the loan amount anywhere as needed.

Whereas, in the case of a Flexi hybrid loan, the lender offers a loan with a fixed limit. This means as soon as the borrower meets loan eligibility, the lender approves the credit limit. The borrower can request a withdrawal of the credit funds as and when needed.

Interest rates

For a personal loan, the lender charges an interest rate for the entire loan amount. Whether the borrower uses the loan amount or not. The interest rate is yearly and is much lower than that of other forms of unsecured loans. In the case of the Flexi-hybrid loan, the lender only charges interest on the used credit amount, not on the approved loan amount.

Loan tenure and repayment

The loan tenure for the personal and Flexi hybrid loans is fixed by the lender. But, the loan repayment procedure for both differs.

In the case of personal loan repayment, the borrower is bound to pay a predetermined amount as equated monthly installments (EMI) along with some interest rate. Whereas, in the case of the Flexi hybrid loan, the borrower gets the flexibility to choose the repayment amount and frequency on the condition that the entire sum is repaid within the loan tenure.

Loan disbursal procedure

The loan disbursal procedure for a personal loan is effortless and straightforward. Once the lender approves the loan application, it disburses the loan amount into the borrower’s bank account.

Whereas for the Flexi hybrid loan, after the lender approves the loan application, it disburses the loan amount into a specific account. It is in the borrower’s name, and the borrower has complete control over it. The borrower can use the credit limit as and when needed.

Loan accessibility

While talking about accessibility, the application procedure for a personal loan is straightforward. The applicant for a personal loan should have a credit score of 750 or higher, a stable income, and good repayment history. This makes the personal loan accessible.

The application process for the Flexi hybrid loan is a little stringent. These loans are accessible to those with high incomes and excellent credit scores. The lender charges high-interest rates for the rest.

Application procedure

The application procedures for both the personal and the Flexi-hybrid loans are similar. As a first step, the individuals must apply for the loan and submit the required documents. Next, the lender assesses the borrower’s credit score and eligibility criteria and then approves the loan.

The online application procedure for a personal loan is much more prompt and hassle-free than an in-person visit to the bank branch.

Which is better: a personal loan or a Flexi-hybrid loan?

The type of loan entirely depends on your requirements. If you only need some funds at a time, a hybrid loan is a well-suited option for you. Because it will help you pay the interest rate for only the amount used, which promotes flexibility. But, if you require huge credit at once, a personal loan is a well-suited option. Choose a loan according to your needs and repayment capacity. 

Where to get an instant personal loan?

Piramal Finance offers you a personal loan of up to Rs 10 lakh with zero prepayment or foreclosure charges. You can apply online and avail yourself of a personal loan with a loan tenure of 12–60 months and an annual interest rate starting at 12.99% per annum.

Who can apply for a personal loan online?

A few eligibility criteria apply if you wish to apply for a personal loan online. Read on to learn the requirements in detail.

Salaried individuals working in the following areas may apply:

  • Government Institution
  • MNCs or related companies
  • Partnership Firms
  • Proprietorship concern
  • Private sector
  • Public sector

Age requirement

  • 21 years to 60 years

Income terms

  • A monthly salary of Rs. 25,000 or more

Work experience condition

  • At least six months of experience in the present organisation

Documents required to get a personal loan

The documents necessary to get an instant personal loan are:

PAN card (mandatory)

Identity Proof (any one of the below):

  • Passport
  • Driving License
  • Aadhaar
  • Voter’s Identity Card

Address Proof (any one of the below):

  • Registered Leave and Lease Agreement
  • Passport
  • Driving License
  • Aadhaar Card
  • Voter’s Card
  • Telephone/electricity bills, less than three months old

Income proof

  • Latest month’s salary slips
  • Bank statements not more than three months old


Both personal and Flexi-hybrid loans fall under the same category. Yet both differ in some areas. So choose the one that suits your requirements better. In addition, always check the eligibility criteria of a loan before applying. So what are you waiting for? Apply online to get a personal loan right away or call 1800 266 644 to learn more about how to get an instant personal loan