A personal loan is one of the most useful financial tools available today. You can use one to manage your wedding expenses, finance your travel plans, pay for the education of a loved one, attend to a medical emergency, consolidate debt, and do a lot more. All this while substituting the need to dip into your own savings!
Most personal loans are unsecured loans – you do not need to pledge any security or collateral to avail one – and lenders today offer them at attractive interest rates and favorable tenors.There are two types of personal loans emerging as the preferred means of financing today – term loans and flexi personal loans.
Term loans vs Flexi Personal Loans
Term loans are traditional personal loans where you are charged interest on the entire principal borrowed. You repay the loan in equated monthly installments (EMI) over the course of a pre-decided tenor.
Flexi personal loans, on the other hand, are the newer, smarter way to borrow. Lenders like Bajaj Finserv are making the borrowing and repayment process easy, stress-free, and convenient.
When you choose to avail a flexi loan facility, you are assigned a loan amount basis your creditworthiness. You are free to borrow from within this facility as many times as you need. And you have the option to repay the loan amount in parts every time you have excess cash.
For instance, you may need money for the medical treatment of a relative. With a flexi loan facility, you can keep borrowing as much as you need over the course of the treatment. This amount can be then repaid as part-prepayments whenever you have money to spare – for instance a bonus at work or a promotion.
You can also re-avail these prepaid funds without having to re-apply for the loan. Smart, right?
Benefits of Flexi Personal Loan
Here are the many benefits of choosing a Flexi Personal Loan:
1.Borrow funds as you need them: No expense is pre-planned to perfection; unexpected expenses are a common aspect of financial requirements. You can be prepared with a solution for such instances with a flexi personal loan. Combat unexpected expenses by making multiple withdrawals from your sanctioned amount as and when the need arises.
2.Pay lesser interest: Flexi personal loans can help you cut down on interest payments too. When you avail this loan, the interest is only charged on the amount you actually withdraw, and not on the entire sanctioned sum. This means that if you get a loan of Rs.20 lakh, but withdraw only Rs.15 lakh you will be paying interest for only Rs.15 lakh. This also means your EMIs will be lower. You can further reduce your EMIs by opting for a Bajaj Finserv Flexi Loan, which allows you to choose to pay interest-only EMIs. You can then repay the principal amount at end of tenor, thereby improving your monthly cash flow.
3.Make repayment easy: Flexi personal loans are more affordable, which makes repayment easier. Rather than charging you interest on the entire sum, they only attract interest on the withdrawn amount. Secondly, you can also make part prepayments when you have excess funds. This assists you in making rapid progress in paying off the principal.
4.Get easy access to funds: You can also benefit from uncomplicated procedures to access funds in a flexi loan. You can withdraw as many times as you like within your sanctioned limit without wasting time making fresh loan applications. So, it caters to your busy schedule and urgent needs, giving you immediate access to money. Also, with a flexi loan, you won’t feel compelled to borrow more than you need to be prepared for unexpected expenses. The money is there for you when you need it.
5.Manage your loan online: Online loan management helps you access your funds and the loan statements from your office desk, bedroom laptop, or your cousin’s computer when you’re traveling halfway across the globe. Having online access to your flexi personal loan also eliminates the need to find your lender’s nearest branch to check your account.
How to apply for a Flexi Loan
Applying for a flexi personal loan is effortless and convenient. You can apply online by filling out a simple form and adding your personal and professional details. Your application is reviewed based on your credit score and income. After this, all you need to do is to submit a few documents and you will get instant approval with a quick disbursal of funds.
NBFCs such as Bajaj Finserv offer flexi personal loans up to Rs.25 lakh at attractive rates of interest and flexible tenors. Read more to see how you can make the most of this unique new loan product today.