A flexi personal loan is termed a special kind of personal loan having a predetermined limit fixed by a financial institution from whom you can withdraw the funds as per your requirement. The limit on the flexi-personal loan is fixed initially by the bank depending on your past credit record. A Flexi-personal credit option helps mitigate an instant need for funds during any exigency. Discussed in this article are benefits, features, rate of interest, documents required, and procedures to follow to go for a flexi personal loan. Also, mentioned are the best banks for personal loan flexi-loan and personal loan interest rates offered by such lenders.
What is a flexi-personal loan?
A flexi personal loan is a type with a predetermined credit limit. Based on your credit score and profile, a lender offers a pre-approved limit on cash in the form of a line of credit or overdraft option. Flexi loan rate of interest is levied just on the proceeds used by the loan seeker and not on the whole sanctioned proceeds.
You can make principal proceeds as and when you require. However, you require clearing the interest constituent monthly. You may even consider prepaying the loan as and when you hold surplus funds in hand. So, any self-employed or salaried individual can avail a flexi personal loan and use the proceeds to meet any of their financial requirements.
How does the flexi personal loan function?
Flexi personal loan work in a way the same as overdraft options. Once you place an application for a flexi loan, the financial institution preapproves loan proceeds depending on your affordability potential, credit score, income, etc. Funds are disbursed to your bank account without any additional documentation and formalities. Post this, you can withdraw funds within a specific credit card limit for any reason as and when you require. Interest is levied on the amount you spend. Zero interest constituent is levied on the rest of the loan limit that you do not avail as a loan. Whether you are salaried or self-employed, you can go for a flexi personal loan.
Also Check: Personal Loan Interest Rates
Benefits and features of opting for a flexi personal loan –
Flexi personal loans come with distinct benefits over regular personal loans. These include –
Funds are available at anytime
Flexible personal loan assists you to sail through the financial exigency requiring instant cash outflow. After the limit of the flexi loan is approved, you can withdraw the funds at any time you require and, at any frequency, as per your need.
Pre-payment facility
In such credit options, you have complete freedom to make the prepayment of the fund you have borrowed with additional funds available. The standard repayment even is as simple as you would borrow just the amount you require and can instantly repay the same whenever you get surplus funds. You can make use of an online flexi personal loan calculator to calculate your loan interest cost.
Moderate rate of interest
Flexi personal loan rate of interest is not on the higher side, and it even assists you as a loan seeker to lower the interest constituent payout. The rate of interest is applicable just on the amount that you withdraw and not the whole sanctioned credit limit by the lender.
Multiple withdrawal opportunity
It is not like any usual loan where you are provided with the overall loan proceeds in a single go. In a flexi personal loan, a loan seeker can make any number of withdrawals from the offered loan credit limit.
What are the documents required for a flexi personal loan?
In the case you are looking to place an application for the flexi personal loan, you must keep handy specific important documents. As it’s an unsecured credit option, the basic documents required are –
Proof of identity – PAN card, Aadhaar card, passport, and others.
Proof of income – Pay slips of the past three to six months would be required while opting for a flexi personal loan for salaried individuals.
Proof of address – Voter card, Aadhaar card, driving license, electricity bill, passport, and others.
Proof of business – GST registration, practice certificate, AOA and MOA, shop act license, partnership deed, etc.
Bank account statement – You must provide a statement showing your past six months’ business transactions and an ITR (income tax return) document.
Note that the lenders may ask you to provide other important documents too as per their requirements.
Eligibility parameter to place an application for flexi personal loan –
Eligibility parameters for salaried individuals –
- Nationality – Must be an Indian national
- Credit score – 750 and above
- Employment – Must be employed with MNC, private or public company
- Age – Must fall between the age range of 21 and 60 years.
- Income – Based on the city you stay in
Eligibility parameters for self-employed individuals –
- Nationality – Must be an Indian national
- Credit score – Must have a credit score of 750 and above to avail a loan at the lowest personal loan interest rates
- Business vintage – of at least three years
- Age – Nearly 24 to 60 years
All the details mentioned above are general representations. Thus, before placing an application, ensure to check the website of the lender to know the exact eligibility parameters.
How can you place an application for a flexi personal loan?
Listed here are the crucial steps you must ensure to follow to place an application for a flexi loan –
No. 1 step –
Approach the official site of the lender from whom you want to avail a loan.
No. 2 step –
Hit on the option “flexi personal loan”. You would most probably figure out this facility in the lender’s site on the product tab.
No. 3 step –
Hit on the apply now option
No. 4 step –
Ensure to fill out the asked details in the loan application form
No. 5 step –
Upload all the required documents
Post authenticating your documents and application, the lender will disburse the loan proceeds to your account. Also, you can visit the closest financial institution or bank branch of your preference to avail a flexi personal loan.
Flexi personal loan interest rates from the best personal loan lenders –
| Lenders | Rate of interest (per annum) |
| Bajaj Finserv | 11 per cent per annum onwards |
| HDFC bank | 28 per cent per annum |
| Money Tap | Begins from 13 per cent per annum |
| ICICI Bank | 12 per cent per annum onwards |
Conclusion –
Flexible loans are helpful for meeting your financial exigency or financial shortfalls. To qualify, you must ensure to maintain a strong score. Make sure to keep all the basic documents handy to speed up the personal loan approval proceeds. Also, check and compare personal loan interest rates of distinct lenders. In this case, if you are looking to avail an instant loan in a stress-free manner with minimal documents, just opt for digital lenders like Stashfin, NAVI, MoneyTap, etc.
