A flexi loan is a type of personal loan with flexible withdrawal and repayment options. Unlike traditional loans, it allows borrowers to withdraw funds as needed, pay interest only on the amount used, and repay in multiple ways.
Flexi loans are ideal for emergency expenses, business cash flow management, or recurring financial needs, giving borrowers more control over their funds.
Step-by-Step Guide to Apply for a Flexi Loan
Step 1: Check Your Eligibility
Most lenders have criteria for flexi loans, including:
Age: 21–60 years (may vary by lender)
Minimum income: ₹15,000–₹25,000 per month
Employment: Salaried or self-employed with a stable income
Credit score: Usually 600+ for approval
Step 2: Research and Compare Lenders
Compare interest rates, withdrawal limits, and repayment flexibility.
Look for additional fees or hidden charges.
Check online reviews and ratings for reliability.
Step 3: Gather Required Documents
Typically, you will need:
PAN card and Aadhaar card
Address proof (electricity bill, passport, rental agreement)
Income proof (salary slips, bank statements, ITR for self-employed)
Photographs
Step 4: Apply Online or Offline
Online: Fill out the lender’s application form, upload documents, and submit for verification.
Offline: Visit the lender’s branch, submit forms and documents, and complete KYC.
Step 5: Verification Process
Lender verifies personal, income, and credit details.
Some lenders may conduct a quick background check or call your employer for confirmation.
Step 6: Loan Approval and Limit Allocation
Upon approval, you receive a loan limit.
You can withdraw as needed and only pay interest on the amount utilized.
Step 7: Flexible Repayment
Repay partially or fully anytime without prepayment penalties (depends on lender).
Interest is charged only on the used portion of the loan, saving money compared to traditional personal loans.
Benefits of a Flexi Loan
Interest Only on Used Funds – Saves money compared to fixed loans.
Flexible Withdrawals – Use funds as per requirement.
Easy Top-Up – Some lenders allow top-ups on existing limits.
Emergency Fund Ready – Ideal for unforeseen expenses.
No Prepayment Penalties – Repay early without extra charges (check lender terms).
Tips for a Smooth Flexi Loan Application
Maintain a good credit score for faster approval.
Keep all documents updated and accurate.
Avoid taking the full loan limit at once to save on interest.
Compare multiple lenders to find the best rates and terms.
FAQs: Flexi Loans
Q1. What is a flexi loan?
A flexi loan is a revolving credit facility allowing borrowers to withdraw funds as needed and pay interest only on the utilized portion.
Q2. Who is eligible for a flexi loan?
Salaried and self-employed individuals aged 21–60 with a stable income and a reasonable credit score are usually eligible.
Q3. Can I repay the loan early?
Yes, most lenders allow prepayment without penalties, though terms may vary.
Q4. How is interest calculated?
Interest is charged only on the amount withdrawn, not the full loan limit.
Q5. How is a flexi loan different from a personal loan?
Unlike personal loans with fixed disbursement and fixed interest, flexi loans offer flexible withdrawals and repayment, with interest on used funds only.
Published on : 1st October
Published by : SMITA
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