Flexi Personal Loan

As 2020 endured a massive economic upheaval, analysts predict a change in the reason for borrowing personal loans. Earlier, consumers preferred unsecured credit more to fulfil aspirations like luxury acquisitions, vehicle, dining, travel, hospitality, etc.

The coming fiscal, however, expects a more need-based demand for medical, education, wedding or other monetary emergencies. Irrespective of the purpose, borrowers should manage such big-ticket expenses with products like a Flexi personal loan effortlessly.

  • Loan disbursal to consumers with income below Rs.3 lakh increased over 3 years, an FY20 report says.

How are Flexi personal loans different?

Personal loans are reliable financial instruments which cater to bigger monetary requirements adequately. Whereas, a Flexi Loan is an innovative option that comes with greater savings, flexibility and convenience.

Also known as Flexi hybrid loans, the entire sanctioned fund gets disbursed to the borrower’s account directly. He/she can withdraw the necessary amount multiple times whenever required. In terms of repayment, he/she can choose to prepay the withdrawn amount with an access to a lump-sum funding or repay at the tenure’s end. What differentiates Flexi loan from a term loan is the interest applicable.

  1. If you avail a personal loan, the rate of interest is imposed on the total principal amount, whether it is used or unused.
  2. On the contrary, Flexi personal loans incur interest rates only on the utilised credit and not the total principal. That signifies you need not pay any interest rate on personal loan if you prepay the withdrawn fund, and hence, save on unnecessary interest outflows considerably.

Ensure to gain a thorough idea of which one between Flexi loans and term loans lowers your EMIs.

Problems in managing big expenses

To understand the utilisation of a Flexi personal loan, check out some problems of managing bigger expenditures.

  1. Improper budgeting.
  2. Mismanagement of funds.
  3. Investing or expending wrongly.
  4. Expending more than necessary.
  5. Lack of a repayment plan.
  6. Inaccurate assessment leading to increased outflow.

How can you handle bigger expenditures using Flexi loans?

While Flexi personal loans are revolutionising personal lending in India, check out how to efficiently manage your expenses.

  1. The multiple withdrawal facility enables borrowers to utilise money according to their budget. It eliminates unnecessary utilisation, which otherwise increases debt burden.
  2. If you have many smaller financial obligations, this unique option proves ideal.
  3. Repayment flexibility offered by a Flexi personal loan reduces chances of default. You can withdraw and prepay whatever amount is needed at your ease.
  4. As you cater to bigger expenses, your interest outflow remains within your control.

Suppose you avail a personal loan of Rs.10 lakh for higher education. After withdrawing Rs. 50,000 from the sanctioned fund, the current outstanding principal stands at Rs.9,50,000. In Flexi loan facility, pay charges for the withdrawn fund only and keep the remaining fund unused. Either repay Rs.50,000 and take another Rs.20,000 when the need arises or withdraw another Rs. 20,000 and pay low interest rate on personal loan on Rs. 70,000 (Rs.50,000 + Rs.20,000) only.

Lending institutions like Bajaj Finserv bring attractive benefits such as free part-prepayment, no multiple applications, online payment and withdrawal, etc.

The NBFC further provides pre-approved offers that not only make the loan availing procedure less complicated but also more time-saving. These offers are available on a host of financial products, including personal loans, business loans, credit cards, etc. Provide your name and contact number to know your pre-approved offer online.

  • As of FY2020 end, the market share of NBFCs doubled in the previous 2 years. It currently stands at 42%.  

While pre-approved offers are exclusively for existing customers, new borrowers can fill up the online application form. The process of how to apply for a personal loan is simple. You can also check how the disbursal process works before form submission.

Concerns of work loss, job instability, salary reductions, increased needs, etc. may insist consumers in India to seek credit. A Flexi personal loan offers the required flexibility of using high-value financing without posing a financial burden.

By Anurag Rathod

Anurag Rathod is an Editor of Appclonescript.com, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.