What Is a Flexi Personal Loan: Check Its Key Benefits

Financial emergencies can arise anytime in an individual’s life, and this can be because of a variety of things like sudden medical expenses, unexpected travel, etc. Whatever the reason is, it is nearly impossible for a person to remain financially prepared for such situations. At times, it gets difficult to arrange the money required to deal with such unforeseen situations. In such a scenario, applying for a loan seems like a great option. However, it is also a fact that almost every type of loan has an application procedure and needs a certain amount of time for fund disbursal.

But what if we say that you can get a credit limit approved beforehand and get the loan whenever you need the money? Well, you read it right! Flexi personal loan is a financing solution that can help you take care of any unplanned expenses and sail through tough situations smoothly. In recent years, these loans have gained huge popularity among borrowers for the amount of convenience they offer.

Read on to know the meaning of flexi personal loans and their benefits:

What is a Flexi Personal Loan?

Flexi loan is a type of personal loan offered by lending institutions, including banks and NBFCs. As the name suggests, these loans give you complete flexibility, in terms of fund usage. You can get a certain loan limit sanctioned and get the amount disbursed as and when required. Generally, there is no limit on the number of times you can withdraw the money. So, you can get as many installments as you want within your sanctioned loan limit without having to submit multiple applications for the same. In addition to this, the documents required for flexi personal loans are also submitted only once, at the time of initiating the application. After that, no document submission is required.

In other words, a flexi personal loan is somewhat similar to an overdraft facility provided by banks. In this type of loan, you can withdraw the loan amount from the pre-approved credit limit whenever you require it. Similarly, you also have the option to make a prepayment against your loan without any kind of additional charges.

The interest applicable on a flexi personal loan is calculated according to the loan amount you obtain and for the number of days/weeks/months, etc. Although you can pay the outstanding loan amount as per your convenience, the interest needs to be paid on a monthly basis.

Suggested Read: DIFFERENT TYPES OF PERSONAL LOANS IN INDIA

Key Benefits

Here are a few major advantages of choosing flexi personal loans:

Quick Fund Disbursal

In flexi personal loans, there is no need to submit an application every time you need the money. So, fund disbursal is easier and quicker as compared to other popular types of loans. You can get a credit limit approved in advance and use it according to your requirements.  

Minimal Documentation

Unlike other popular financing options, flexi personal loans do not require lengthy paperwork. You can submit all the required documents at once. When you get approval for your requested loan limit, all you need to do is, raise a disbursal request for a specific amount of money.

Lower EMI

Another advantage of these loans is the low EMI amount. In flexi personal loans, you have the flexibility to withdraw funds in multiple instalments. If you aren’t using your entire limit in one go, the amount of your monthly installment will be less. In addition to this, a few lending institutions also give you the option of an interest-only EMI. As the name suggests, you only pay the interest applicable on your loan in this arrangement. The outstanding principal amount can be paid as per your convenience. 

No Pre-payment Penalty

Just like other types of loans, flexi personal loans also give you the option of partial pre-payment. This means that you can pay your entire outstanding loan amount or some part of it in one go instead of making multiple smaller instalments. This way, you can save a lot on the interest amount. The best thing is that you don’t have to pay any additional charges for this.

Suggested Read: WHAT IS THE DIFFERENCE BETWEEN PART PAYMENT, PRE-PAYMENT, AND PRE-CLOSURE?

Are you also planning to avail a flexi personal loan to take care of some unplanned expenses? If yes, this is where your search ends! At Muthoot Finance, we offer quick and hassle-free flexi personal loans at competitive interest rates. For more information, you can either reach out to us online or visit your nearest Muthoot Finance branch.