Flexi Loan (2024)

FAQs

What is a flexi 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.

Conclusion. Flexi loans are instant, convenient, flexible and affordable financial product. The borrower can withdraw the money within approved credit limit multiple times for any financial requirement. Flexi loans also provide flexibility to the borrower in making repayments.

Borrowers benefit from having full flexibility in paying their loan. Usually, borrowers will use a current account linked to the housing loan, making it easier to deposit the excess money at any time. Similar to a semi-flexi loan, additional repayment amounts will lower the interest and shorten loan tenure.

How does the Flexi-Personal Loan work? It works just like the Overdraft facility where the lender pre-approves a loan amount, and you can withdraw the needed funds within the allotted credit limit. You can use the loan for any purpose, and the interest is charged only on the amount you wish to use.

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.

Cons of a flexi loan

Firstly, most banks will charge a monthly fee for the maintenance of this current account. That means an additional financial cost beyond just your repayments.

Is it hard to get a flex loan? If flex loans are available in your state, you can likely access one even if you have bad credit. However, you'll need a source of income and a checking account, and you'll need to provide your Social Security number.

A flex loan isn't really a loan at all — it's an unsecured open line of credit. If your loan application is approved, you can withdraw cash at any time up to your approved credit limit, which can be a few hundred to thousands of dollars, depending on the lender and how much you're borrowing.

The minimum Cibil score business loan amount is 750. Individuals who are unable to get a score within 700 and 900 might not be eligible to avail a term loan or invoice financing. But with FlexiLoans, things and situations can be completely different.

All payment methods are available - Net-Banking, Debit Card, Credit Card, Freecharge Wallet or UPI (Available only through Freecharge App). With Freecharge you get monthly payment reminders, so that you do not miss any due dates. You can easily pay FlexiLoans loan payment online with freecharge.com or Freecharge app.

Is a Flexi loan a personal loan? ›

A Flexi Loan is a different type of personal loan. Instead of having to take your whole balance in one lump sum and pay interest on that, you choose to withdraw as much as you need, whenever you need to – and only pay interest on those amounts.

My1 Full Flexi Home Loan. Have the freedom to make unlimited additional repayments and redraws for what matters most in life. Enjoy the flexibility to prepay and redraw excess funds whenever you'd like to enjoy interest savings and shorten your loan tenure.

A flex loan is a line of credit, which works kind of like a credit card. The lender approves you for a credit limit, which is the maximum amount available for you to borrow and is often available the same day you apply. You can borrow up to that amount, and as you repay your balance, your credit line replenishes.

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.

The difference between a flex loan and a payday loan is that a payday loan is repaid in a single payment on your next payday. Flex loans, by contrast, allow you to choose a repayment plan and use a minimum monthly payment. Another difference is the amount you can take out.

And similar to a lease, Flex Auto Financing offers you a lower payment (up to 40% lower) due to your payment being based on the portion of the vehicle you are using during your loan term. You also get the benefit of terms up to 72 months and vehicles up to 5 years old are eligible.