Unexpected expenses can disrupt your budgets and lead to financial strain if not managed properly. This becomes even more pertinent if your expenses fluctuate often. Thankfully, fintech advancements have brought forward innovative solutions that enable you to meet such requirements easily.
One of these solutions is the flexi personal loan. It is a type of personal loan that offers more flexibility in borrowing and repaying. You can borrow freely, as per your needs, and ensure that you do not put undue strain on your finances.
Read on to know more about flexi personal loans and how they help you manage fluctuating expenses.
What are Flexi Personal Loans?
A flexi personal loan is a type of personal loan. However, there are some key differences with the first is that it is similar to a line of credit. Here, instead of borrowing the entire sanctioned amount, you borrow what you need from an approved loan amount.
However, you can make multiple withdrawals whenever needed. This means that if you have an approved limit of ₹5 Lakhs, you can withdraw ₹1 Lakh, ₹50,000, ₹2 Lakhs, or any other amount as many times as you want.
It is crucial to remember that the total amount of your withdrawals should not exceed the approved limit. In addition to this, you pay interest only on the funds you use, not the entire approved amount. This helps you reduce the borrowing costs and enjoy financial assistance at an affordable cost.
You also get flexibility in repayment as many lenders offer multiple options, enabling you to choose what you want and manage the expenses conveniently. You can also use the EMI calculator and calculate the personal loan EMI and apply accordingly.
All in all, a flexi personal loan saves you from making multiple loan applications whenever you need funds. Instead, you can apply once and enjoy access to cash whenever you need it.
4 Benefits of Flexi Personal Loans
Here are a few benefits of a flexi personal loan that make it a reliable solution for unexpected or fluctuating expenses:
Borrow When You Need
As mentioned above, in this loan, you get a loan from which you can borrow when the requirement arises. In this loan, you have an account with the lender and withdraw the amount you need when you need it.
For example, suppose you get a loan for ₹5 Lakhs and need ₹1 Lakh immediately. In this case, you will withdraw only ₹1 Lakh, and the rest will stay in your loan account. If you need ₹50,000 in the next month, you can withdraw the same from your account.
You can make as many withdrawals as you want up to your approved limit. As such, you have better flexibility in borrowing funds, enabling you to handle unexpected expenses without any hassles.
Pay Only for What You Use
In addition to allowing multiple withdrawals, lenders charge interest only on the funds you use, not the entire loan amount. This means that if your loan is ₹5 Lakhs, and you use only ₹2.5 Lakhs, you will pay interest only on ₹2.5 Lakhs.
This is a major benefit of flexi personal loans as your borrowing cost is reduced significantly. Moreover, it reduces your EMI burden, enabling you to save more and maintain your cash flow.
Repay On Your Terms
A flexi personal loan offers flexibility all around, not just on borrowing but also during repayment. You can choose from multiple repayment options. One of these options is paying interest-only EMIs at the start of your loan tenure.
This can significantly reduce your EMI burden. You can also calculate personal loan EMIs with the EMI calculator. Doing so will help you optimise your repayments and ensure they are manageable.
With this loan, lenders allow you to make part prepayments for the utilised amount. You also pay no additional charges for these payments. Lump sum payments like these can further help you lower your borrowing costs as the principal amount reduces.
As such, this loan facility becomes an affordable and convenient option to manage your needs.
Easy and Instant Access to Funds
Lenders offer the facility to apply online for a flexi personal loan, just like regular personal loans. As such, you can not only borrow on the move but also apply on the move. With online applications, you can apply with your chosen lender in just a few minutes.
Moreover, online management facilities give you instant access to your loan limit. This allows you to withdraw whenever you need, without any delays. Lenders also set simple eligibility and document requirements.
Eligibility Parameters and Documents Required
Here are the standard eligibility and document requirements for a flexi personal loan:
You should be between the ages of 20 and 80
You should be an Indian citizen
You should be a salaried employee
You should be residing in an eligible city
Bank account statements for the previous 6 months
Salary slips or Form 16
Remember, these are generalised requirements. The actual parameters may vary depending on the lenders and your application. You can check your eligibility or offer before applying and proceed accordingly.
How to Apply for Flexi Personal Loans
Lenders offer an online application process for flexi personal loans, and with it, you can apply in minutes. Here are the general steps you can follow:
Step 1: Visit the official website of your preferred lender
Step 2: Navigate to the flexi personal loan section and click on ‘Apply’
Step 3: Provide the required details to verify your identity
Step 4: Fill out the application form with required details
Step 5: Choose your loan amount and tenure
Step 6: Upload the required documents
Step 7: Submit your application
Once you submit the application, the lender will process it. Upon approval, the lender will make the sanctioned amount available to you. You can then withdraw as needed, and utilise as you want.
Remember to read the terms and conditions to avoid any surprises during repayment. It is clear that getting a flexi personal loan can be a great way to accommodate any fluctuations in your expenses.
With its flexibility, affordability, and accessibility, you can get the best deal from some of the top lenders. You can even calculate personal loan EMIs to better understand your outgo before you borrow. For this, you can use the calculator available on the lender’s website.