If you are looking for a personal loan but need more flexibility in how you can use and pay back the money, then a flexi personal loan is what you may need. A flexi personal loan is not like regular loans where you borrow a fixed amount and then repay in fixed installments. Here, you have a certain limit and you borrow only what you need and pay it back in a way that works for you. Let’s explore more and understand what is a flexi personal loan, its features and more. Here, we will also learn how a flexi loan works.
What is a Flexi Personal Loan?
A flexi personal loan is a loan that gives you the freedom to borrow as much as you need and whenever you need, up to a certain limit. It works like a credit card, where you use a certain amount from a limit provided and then pay the interest on what you have actually borrowed. Let’s understand it with an example:
Suppose you are approved for a ₹1 lakh flexi loan. Now, you do not have to borrow the entire amount. You can borrow just ₹50,000 and interest will only be charged on that ₹50,000. Moreover, you would have the flexibility to borrow more money later if you need it.
How Does a Flexi Personal Loan Work?
Well, it’s pretty simple. After the loan is approved, you will be given a credit limit. Now, you can borrow any amount up to that limit. If your limit is ₹5 lakh, you can borrow any amount up to ₹5 lakh and you would be paying interest on what you have borrowed. If you repay some of it, you can borrow again, just like a credit card.
Key Features and Benefits of Flexi Personal Loans
- You can borrow only what you need without taking out the full loan amount.
- Just like a credit card, you can borrow, repay, and borrow again within your approved limit.
- You can make smaller payments if that works better for you. This way it is easier to manage your finances.
- You have more control over how and when you repay. Hence, it is easier to fit into your budget.
- You pay interest only on the amount you borrow, which can save you money compared to a traditional loan.
- Flexi loans are usually approved and disbursed quickly, so you can get the money when you need it.
- Flexi loans usually come with lower EMIs compared to other personal loans, thereby, making them cheaper in the long run.
- Usually in the case of flexi personal loans, if you want to pay off your loan early, you would not be charged any extra fees.
Eligibility Criteria for Flexi Personal Loans
There are certain requirements you need to fulfil to apply for a flexi personal loan and get it approved. So, here’s what you usually need:
- Age: 21-58 years
- Income: You should have a stable income. The per-month salary requirement varies from lender to lender.
- Credit Score: A good credit score, usually above 650, helps increase your chances of approval.
- Job Type: You can be a salaried employee or self-employed with a steady income.
- Address Proof: You need to provide proof of your address in India.
How to Apply for a Flexi Personal Loan?
Applying for a flexi personal loan is quite simple and here’s what you need to do:
Step 1: Select a Lender
First, choose a bank or lender that offers flexi loans. Check their flexi finance interest rate and other terms to see if they work for you.
Step 2: Fill Out the Application
You then need to fill out an application form with your personal and financial details.
Step 3: Submit Documents
These documents include your ID proof, income proof like salary slips, address proof and a credit report.
Step 4: Wait for Approval
Once the application is submitted, wait for the lender to approve the loan. The lender will check your eligibility, and if everything looks good, they will move forward and approve your loan.
Step 5: Receive the Loan
Once approved, get the funds in your bank account and start using them as needed.
Conclusion
A flexi personal loan is quite flexible and a great option for you if you are looking for easy funds without any hassle of applying for loans again and again.
With CASHe, you can get a pre-approved limit of up to ₹2 lakh at competitive interest rates and good loan terms. You can also avail instant personal loans of up to ₹3 lakh with CASHe. All you need to do is download the CASHe app and create an account to apply for it.
