Personal Loan

Why Consider Flexi Personal Loans to Manage Travel Expenses? 


Despite having a detailed travel budget for the upcoming holiday, travellers may notice a financial crunch. The different activities at the holiday place, plus food expenses, can take a toll on their pockets. Managing these expenses from a limited budget or earnings can be difficult.

Does that mean they cannot go on holiday? No, of course, they can go. That’s where the travel Flexi loans help.

What are Flexi loans?

Flexi loans are when customers have been sanctioned a certain amount by the bank. They don’t have to withdraw the entire amount in a single go. They can withdraw the funds that they need as and when they want.

When they pay a certain fraction of the withdrawn amount, they can draw it again as per the use. This way, they get a specific amount, which they can use.

The most significant advantage of the Flexi loan is that they don’t need to wait for the bank or financial institution to sanction, complete the paperwork and offer it. They can avail of it in their bank account within minutes of applying without any documentation. They use the available KYC details to complete the process.

Note: It is an overdraft facility with a set withdrawal limit at their will.

Benefits of Flexi Loans

There are several benefits associated with availing of Flexi loans for holiday trips. With a few instant clicks, they can get the money in the desired account and spend it on their next trip.

Let’s discuss the top benefits of availing the Flexi loans.

  1. Borrow and Spend on Unplanned Expenses

They might be working on a tight budget when they are on vacation. However, there are expenses that they might not have considered. If they overshoot their budget, the Flexi loans can help meet these new expenditures.

With minimal documentation and instant paperwork, they get to fund the new unplanned expenses while at their destination.

  1. Pay for the Withdrawn Amount

If they have withdrawn a partial amount from the sanctioned fund, they must pay it back alone. They won’t need to pay back the entire approved fund. Moreover, the interest rates will be levied only on the withdrawn amount and not the total approved fund. As a result, it makes things easier for them in many ways.

  1. Part Pre-pay at no Additional Cost

They can partially pre-pay the funds they have withdrawn without incurring additional costs for prepayment. This option is available with Flexi loans. It ensures they don’t have to pay a heavy interest amount to avail of the funds.

  1. Financial Flexibility

In most cases, when they go to take a loan, they might spend more time and effort in documentation and processing. They may also need to check whether the amount has been sanctioned.

With Flexi loans, they get the flexibility to avail of part or the full amount without waiting for the sanctioning. It is already available for them, and they just need to apply. It gives them the necessary financial freedom they get with borrowing and returning.

  1. Low EMI

Most Flexi loans offer low EMI options with multiple payment periods. This would allow them to find a repayment option that fits their expenses and income. They can choose the feasible payment period and EMI, which again gives them an upper hand on borrowed funds.

Personal Loans vs Flexi Loans

How do Flexi loans differ from personal loans? What makes them better? Here is an at-a-glance comparison of the two that can help them understand better.

FactorsFlexi LoansPersonal Loans
Loan TypeThey get an amount sanctioned based on defined eligibility criteria. They can withdraw any amount as often as they want and repay it in the defined period.It is a fixed amount sanctioned by the lender based on defined criteria. They will get the entire amount and a loan repayment schedule.
PurposeThey can use it to grow their business, as part of their vacation budget or even repay other loans.They are offered for a defined purpose, and they can spend on that alone
AccessibilityThe amount is already sanctioned and ready to be disbursed. As a result, it is highly accessible and instantly available.The process is rigid and follows a defined documentation path. They must complete a lot of paperwork before getting the sanctions.
Interest ChargedInterest is charged on the loan amount withdrawn by themInterest rate is charged on the entire amount sanctioned and disbursed by the bank

How to Choose a Loan for Their Needs?

There are several factors that will help determine the loan they should avail to match their needs.

  1. The Amount: Will the amount sanctioned by the Flexi loans help them with the financial requirements?
  2. Repayment Tenure: Is the repayment period suitable for them? If they are supposed to pay back in two years, the amount would be defined accordingly. However, if the period and EMI exceed their income, it may not suit them.
  3. Interest Rate: Similar to the repayment period, the interest rate is also an important concern for those planning to avail of a loan. If the interest rate is too high, the EMIs would be more, and they may or may not be feasible.
  4. Prepayment Clauses: Do they charge extra for prepayment or foreclosure of the loan? They need to check the same before they can avail of the loan.
  5. Documentation and Processing: If the loan takes a longer time to complete processing and requires a lot of investment in terms of documentation, it is not accessible.


Flexi loans can help them manage their immediate fund requirements with instant transfers into the bank account. They can avail of the sanctioned fund, either in full or partially. It is important to pay close attention to the clauses, hidden agreements and other aspects before completing the process.

If anyone needs more tips on loans and other financial products, then follow Piramal Finance blogs