Since a personal loan offers collateral-free financing that is both quick and affordable, it has become a popular option with many variants from lenders across the country.
So, you may be asking yourself, ‘What is the best option for a personal loan?’ To get clarity on this question, you must first be aware that there are two types of personal loans: One is the regular term loan and another is the flexi personal loan.
The former is the older variant in which you obtain a fixed loan amount from your lender and pay regular EMIs to repay it. The latter is a newer, more versatile option in which you can borrow from your sanction multiple times as per your needs.
Here’s a rundown on the way a Flexi personal loan works and the benefits of signing up for it.
How does a flexi loan work?
A flexi loan is a kind of personal loan in which you have the freedom to borrow from your sanction multiple times and in parts to address your present needs.
Say you have a sanction of Rs.20 lakh and need Rs.12 lakh to do house repairs. Here, you pay interest only on the amount you have withdrawn, which is Rs.12 lakh.
This helps you save on interest payments on the total loan amount, thus making repayment more affordable. You can then borrow the remaining Rs.8 lakh in parts as the need arises.
As opposed to traditional personal loans, a flexi loan allows you to deal with real-life situations faster as you don’t need to make a fresh application for more funds, should you need them.
In the above example, you can borrow Rs.5 lakh more if your home repairs involve an additional cost for roofing tiles. Currently, Bajaj Finserv is one of the lenders offering flexi personal loans.
Another advantage of flexi loans is that you can choose to pay interest-only EMIs to manage your cash flow better and repay the principal at the end of the tenor. This way you can reduce your EMIs by up to 45%.
Is a flexi loan good?
Taking a loan like the Bajaj Finserv Personal Loan with flexi facilities gives you a wealth of advantages, from interest savings to quick financial aid to deal with unpredictable expenses.
These advantages combined are the reason why flexi loans are revolutionising lending in India.
Take a look at the benefits of a flexi loan in detail below:
- Borrow as you go: Instead of predicting the entire loan amount you need right at the beginning, a flexi loan allows you more flexibility when it comes to withdrawal. Since you can borrow multiple times as and when the occasion demands it, you can enjoy greater convenience as compared to a regular term loan.
- Save on interest: When you use a flexi loan, you incur interest rates on personal loans only on the amount you use and not on the total sanction. This feature ensures that you save on interest. Additionally, Bajaj Finserv allows you to bring down your EMIs by up to 45% by giving you the option to pay interest-only EMIs through the tenor and the principal at the end.
- Withdraw easily: With a flexi loan, you need not make fresh loan applications every time you seek to withdraw finances. Since you are already sanctioned a loan amount, you can keep utilising funds from it without any hassles.
- Prepay at no extra cost: You can also make part-prepayments on your Flexi loan at zero charges when you borrow from a lender like Bajaj Finserv. This allows you to conveniently channelize any surplus or idle finances towards repaying your debt economically.
- Redraw if required: Flexi loans allow you to redraw amounts even after you make repayments as long as you stay within the sanctioned amount. This versatility keeps you ready to tackle any financial emergency with ease.
Having seen how beneficial a Flexi personal loan is, avail this versatile loan quickly and easily from Bajaj Finserv.
To get a loan of up to Rs.25 lakh on easy personal loan eligibility criteria, check your pre-approved personal loan offer. Doing so gives you instant approval on customized deals.