Everything you need to know about Flexi Term Loans – Bajaj Finserv (2024)

FAQs

What is flexi term loan in Bajaj Finserv? ›

What is a Flexi Term Loan? A Flexi Term Loan is a unique variant of personal loans that allows you to withdraw funds from your sanctioned loan limit as many times as you require and prepay it once you have extra funds. For instance, Riya has a sanctioned Flexi Term Loan limit of Rs. 4 lakh.

One of the major differences between Flexi Business Loans and term loans is the rate of interest. In the case of a Flexi Business Loan, interest is on the amount utilised and not on the entire loan limit. However, interest for term loans is on the entire principal amount irrespective of the amount utilised.

Best Features and Benefits of Flexi Loans

Your loan amount can range from ₹ 10,000 to ₹ 9,00,000. Interest Savings: Interest is charged only on the amount utilised from the sanctioned limit, allowing borrowers to save on interest costs compared to traditional term loans.

You can also close your loan by clicking on the 'Foreclose your loan' option below. You can sign-in to “Your account”, select your loan account, click on the 'Foreclosure' option, and proceed with payment.

What happens when I fail to repay my loan on time? A penalty fee of 0.17% per day past your due date will be applied based on the overdue principal loan balance until the total amount due, inclusive of penalties, is paid.

Easy Access to Funds: A flexi loan borrower can withdraw funds at any point of time, as per their requirement, within the credit limit approved by their lender. Flexible Repayment: Existing flexi loan borrowers can clear the outstanding principal amount, when they have excess funds, as per their convenience.

Lower EMI. This is another upside to Flexi personal loans. Since it isn't necessary for you to withdraw the entire amount that has been sanctioned by the lender, you can save on interest costs. This also translates to lower EMI payouts per month, something that makes your monthly cash flows look up.

The Flexi Loan operates like an Overdraft facility where the lender pre-approves a loan amount within a credit limit. Borrowers can withdraw funds from this credit limit as needed. You can withdraw any amount within your limit, as many times as needed, without additional applications.

Unlike a closed-end installment loan, flex loans might not have a specific end date. It's potentially a recipe for trouble the same way it can be with credit cards — you continue to borrow and pay interest without substantially reducing the amount you owe.

Potential fees.

The APR on a flex loan includes the lender's fees, which can be significant. Some lenders may charge interest and a flat fee, while others charge ongoing fees. Plus, you will likely be subject to late fees if you do not make your minimum payments on time.

Does flex loan affect credit score? ›

Getting a flex loan may not require a credit check so applying for one won't necessarily affect your credit score. But lenders assume extra risk when they don't do a credit check, so they might charge higher interest to make up for that. A flex loan may hurt your credit if you don't manage it responsibly.

However, with the Flexi facility, you are only charged interest on the amount withdrawn, not the total sanctioned loan. A processing fee of up to 3.93% of the loan amount (inclusive of applicable taxes) is also applicable on personal loans.

It provides low-interest rates, fast processing, and flexible repayment terms. The app offers easy application, instant approval, and transparent loan terms. Which app is safe for personal loans? Bajaj Finserv is a safe app for personal loans.

If you are purchase is between 1st to 15th of a month, the first EMI would be between the 2nd to 5th of the following month. If purchased after 15th, the first EMI would be 2nd to 5th of the consequent month.

Pay your EMI in advance

You can visit our customer portal - My Account, select your loan account, choose the option 'Advance EMI' and proceed with the payment. However, if you pay an advance EMI after the 22nd of the month, your advance EMI amount gets adjusted in the subsequent month's instalment.

The Flexi Loan operates like an Overdraft facility where the lender pre-approves a loan amount within a credit limit. Borrowers can withdraw funds from this credit limit as needed. You can withdraw any amount within your limit, as many times as needed, without additional applications.

Repayment Structure

Flexi Term Loan: Borrowers must pay fixed EMIs throughout the loan tenor, including principal and interest components. Flexi Hybrid Loan: Borrowers can choose to either pay interest-only EMIs on the utilised amount or make lump-sum payments at their convenience.

It is a buy now, pay later facility that lets customers buy products and services without having to make an upfront payment. While FlexiPay may function like a small-ticket loan, it provides customers with a seamless and convenient experience.