Flexi Personal Loan: Features, Benefits, and How to Apply

A personal loan can be a saviour during emergencies and financial crises. This unsecured loan form can be utilised for any personal reason including medical emergencies, home renovation or even buying a car. Similar to personal loans, flexi personal loan with certain distinct characteristics is becoming widely popular. Here’s all you need to know about flexi loans India and how to avail of them.

What is a Flexi Personal Loan?

A flexi personal loan is quite similar to a standard loan, except for the fact that it comes with a capping on the cash outflow. In short, it works like an overdraft facility where you can borrow funds up to a pre-approved cash limit as prescribed by your lending facility. A flexi personal loan allows you to withdraw cash up to an allotted threshold and you can instantly borrow funds as and when the need arises.

 Also Read: How Personal Loans Help During An Emergency

How Does the Hybrid Flexi Personal Loan Work?

Flexi personal loan in India works just like the overdraft facility. Under flexible loans, the financial institution pre-approves your loan amount. The approved amount is deposited into your loan account and you are free to withdraw the funds whenever you need them—as long as you stay within the credit limit. Under flexi personal loan, you can use the amount for any legitimate purpose, and the lender calculates the interest only on the amount that you have withdrawn from your loan account. The amount that you have not used does not accrue any interest. In India, both salaried and self-employed individuals can avail flexi personal loans.

Features & Benefits of a Flexi Personal Loan

• A flexi loan is a pre-approved loan. It offers instant disbursal, making funds readily available when the need arises.
• Since a flexi loan is pre-approved, you do not require any additional paperwork to get the loan. In short, it is hassle-free and is available instantly.
• You can avail of any amount under the sanctioned limit. For instance, if you have an allotted sanction of Rs 5 lakh, you may apply for a flexi loan of Rs 3 lakh or any amount below the cap of Rs 5 lakh.
• Interest is charged on the withdrawn amount only. Additionally, the Personal Loan rate of interest for a flexi loan is usually lower as compared to other Personal Loan options.
• You can withdraw funds as many times as you want and need not bother with making a new application every time there is a requirement. This saves a lot of time.
• Under the flexi plan, it is possible to repay the principal amount as per your flexibility. You can manage your income accordingly and repay as and when your inflow permits.

How Does the Flexi Personal Loan Work?

• A flexi Personal Loan, just like an overdraft facility, facilitates flexible borrowing with a pre-approved credit limit. Here is how it works:
• You get a sanctioned loan amount deposited into your loan account.
•  You can withdraw money anytime as needed, up to the credit limit.
• The interest is charged only on the amount you withdraw and not the full limit.
• Both salaried and self-employed individuals are eligible for this loan.
• You get flexible repayment options that allow part pre-payments without penalties.
• It has lower EMIs since interest applies only on utilised funds.
• You get a quick disbursal with minimal documentation requirement.

This loan is ideal for managing expenses efficiently. It gives you stay in control and helps you save costs as you pay interest only on the money you use.

Also Read: Opting for Instant Personal Loan Know How to Get Better Interest Rate

Eligibility Requirements for a Flexi Loan

• A flexi personal loan calculator can help you assess the amount of loan you can avail of based on your income and other financial commitments.
• Eligibility criteria:

For Salaried

1) Must be a citizen of India.

2) Should have a stable income and be able to produce documentary evidence.

3) Should fall into age limits as prescribed by the lender.

For Self-Employed

1) Regularly filed income tax returns as proof of income. 

2) Should be a citizen of India.

3) Should fall into age limits as prescribed by the lender.

Also Read: 5 Brilliant Ways to Avail a Personal Loan with a Low Credit Score

How to Apply for Flexi Personal Loans?

Many financial institutions offer flexible loans of different types. Similarly, the application process for a flexi EMI Personal Loan differs from one lending institution to another. However, the most common steps involved in the flexi pay personal application process are:

• Visit the Hero FinCorp website or install the personal loan app
• Go to the Personal Loan page and click ‘Apply Now’
• Enter your mobile number and verify with the OTP received
• Choose the loan amount you need
• Verify your KYC details to check income eligibility
• Click ‘Submit’ to complete your application

You may also apply for flexi Personal Loans offline by visiting the branch of your preferred financial institution and filling out an application. The offline application procedure is similar to the online application process—fill out an application form and submit your documents, among other things.

Flexi Loans vs. Personal Loans: Which is Better?

A flexi loan is usually recommended if you are expecting a steady increase in income soon. Under this plan, you can gradually increase your EMI amount based on your cash inflow. A standard personal loan plan is a better option for those who have a stable income. Remember, both plans serve different requirements. 

Eligibility Requirements for a Flexi Loan

• A flexi personal loan calculator can help you assess the amount of loan you can avail of based on your income and other financial commitments.
   
• Eligibility criteria:
  
  For Salaried
  
     1) Must be a citizen of India.
     2) Should have a stable income and be able to produce documentary evidence.
     3) Should fall into age limits as prescribed by the lender.
  
  For Self-Employed
  
    1) Regularly filed income tax returns as proof of income.
    2) Should be a citizen of India.
    3) Should fall into age limits as prescribed by the lender.

      Also Read: 5 Brilliant Ways to Avail a Personal Loan with a Low Credit Score
 

How to Apply for Flexi Personal Loans?

Many financial institutions offer flexible loans of different types. Similarly, the application process for a flexi EMI Personal Loan differs from one lending institution to another. However, the most common steps involved in the flexi pay personal application process are: 

• Visit the Hero FinCorp website or install the personal loan app
• Go to the Personal Loan page and click ‘Apply Now’
• Enter your mobile number and verify with the OTP received
• Choose the loan amount you need
• Verify your KYC details to check income eligibility
• Click ‘Submit’ to complete your application

 
You may also apply for flexi personal loans offline by visiting the branch of your preferred financial institution and filling out an application. The offline application procedure is similar to the online application process—fill out an application form and submit your documents, among other things.

Conclusion

In case of emergencies, a flexi loan can be of great help as you can withdraw the desired amount as and when you want, provided it remains within the upper-cap limit. Some lenders even process the application and disburse the loan amount within 24 hours. Use the lender's personal loan eligibility calculator to check if you can get a flexi loan from them. Make sure to check the lender's credibility and not merely fall for marketing gimmicks before you make a financial commitment to anyone.

Frequently Asked Questions

1. How does a Flexi Personal Loan function?

When you avail a flexi Personal Loan, you receive a credit limit. You can withdraw the amount as per your requirement and pay interest only on it.

2. Can I apply online for a Flexi Personal Loan? 

Yes, you can apply for a flexi Personal Loan very conveniently online. Simply fill out an application form with the details required and submit the documents necessary.  

3. What are the advantages of a Flexi Personal Loan?

There are numerous advantages of a flexi Personal Loan such as you pay interest only for the amount you withdraw. You can withdraw multiple times under your limit and enjoy flexible repayment option. 

4. Who can get a Flexi Personal Loan?

Any salaried or self-employed person with a good credit history who satisfies the lender's income criteria can avail a flexi Personal Loan.

5. How do I repay a Flexi Personal Loan?

You can opt for paying the principal at any time without charge. The interest is repaid through standard EMIs. You can prepay with no additional charges.

6. Do I have to pay any charges for prepayment or part-payment?

No, Flexi Personal Loans normally do not incur any prepayment or part-payment charges. This provides you with more flexibility in servicing your loan.

7. How do I apply for a Flexi Personal Loan?

Application can be made by accessing your lender's website, completing the application form with the necessary information and submitting along with the necessary documents.