One of the most versatile financing options, Personal Loans offered by banks and non-banking institutions suffice various cash crunches. The advances can be used for education, business, travel, medical emergencies, etc. Much like it but with more flexibility, reputed lending institutions offer Flexi Personal Loan – a financing choice quite different from regular term loans.
Leading among the non-banking institutions in India, Bajaj Finserv is one such lender that provides Flexi Personal Loan to customers. They also provide pre-approved offers to existing customers on their Personal Loans, mortgage loans, business loans and many other financial products.
Flexi Personal Loans come with such benefits making them even more accessible. Like conventional Personal Loans, these advances are unsecured or collateral-free. Depending on the borrower, they can have a multipurpose use.
So, how is it different from a Personal Loan?
With flexi Personal Loan, a customer can avail a fixed credit limit from where he/she can withdraw as per convenience.
Some features of flexi Personal Loans include:
1. Pay interest as EMI
A customer pays only the interest as EMI with a flexi Personal Loan. They can pay the outstanding principal at the end of the loan tenure.
Thus, when availed, borrowers get affordability in EMI payment and flexibility in repaying the loan. They can save up to 45% in EMIs as compared to traditional Personal Loans.
2. Lower interest
A flexi Personal Loan lowers the overall interest paid compared to traditional Personal Loans.
The Personal Loan interest rates are applicable to the entire principal irrespective of the fund usage. However, with flexi Personal Loans, borrowers only have to pay interest on the amount withdrawn.
3. Pay interest on a daily basis
For whatever they withdraw, customers have to pay interest on a daily basis. If they deposit the amount withdrawn within the same day, they won’t incur any interest.
4. Withdraw money according to need
One of the significant benefits that customers get with flexi Personal Loans is the ability to withdraw as much as they want according to their requirements. Moreover, there is no limit to how many times they withdraw, and they also don’t have to pay any additional charges.
Thus, flexi Personal Loans can act as a saviour in case of emergencies. Situations involving medical crisis can call for immediate funds for which these loans prove highly beneficial.
Points to remember before applying for a flexi Personal Loan from NBFCs:
I. Fulfil the eligibility criteria
Applicants have to fulfil the following Personal Loan eligibility criteria:
- They must be aged between 22 and 55 years.
- Self-employed individuals need to have a business vintage of at least 3 years.
- Self-employed individuals also have to file income tax returns and audit their turnovers for the previous year.
- Salaried applicants have to be employed with a public or private enterprise.
Those applying for such a loan will also have to be a residing citizen of India.
II. Have a good credit score
Banks and NBFCs offer flexi Personal Loans only to those who have a credit score of 750 or above.
III. Ensure you have all documents
Applicants need to deposit KYC documents, address proof, bank statements, salary slips, and other financial documents for availing the loan.
So, when looking to apply for Personal Loan, you can opt for flexi Personal Loans instead. Its primary objective is to offer convenience and flexibility to customers while availing and repaying. Above all, make sure to select your lender carefully to enjoy all these benefits.
By Lucia Adams
who is a professional writer and blogger.