How does a Flexi loan differ from a personal loan?
77% of working Indians availed a personal loan to meet their financial needs according to a report by consumer finance company NIRA. The report took into account individuals with modest take-home salaries and no extravagant expenses except for their daily requirements.
Zero collateral, quick approval and disbursal have made personal loans popular among those looking for funds. However, high rates of interest might be a dampener. This is where a Flexi loan can come to your rescue by providing you with a range of benefits that make the repayment process convenient and more economical.
What is a Flexi loan?
Once a traditional personal loan is sanctioned, the EMI payable by you as per the tenure chosen is a sum of the principal and interest. This can become a liability for the loan duration if you have settled for a high-interest rate at the time of application.
However, a Flexi loan as the name suggests offers you the flexibility to repay only the interest as a part of your monthly instalments. The option to repay the principal is up to you, depending on the availability of funds. This provides you more financial freedom as a borrower as you pay EMI only on the amount utilized by you.
Flexi loan advantages
1. Lower EMIs: Since your monthly instalment is free of the principal component, you end up paying only the interest on the amount borrowed by you as EMI. A Flexi loan can reduce your EMI by as much as 45% making repayment easier. Not only this, but you can also go ahead with loan prepayment at no extra charges.
2. Stay within budget: Unlike a personal loan, a Flexi loan not only provides you with a reusable credit line but it does so while you stay in control of your monthly expenditure. It is an excellent alternative if you are stuck in a difficult financial situation as it allows you to manage your finances even as you repay your loan at no extra cost.
3. Repay your loan at ease: The provision of principal repayment at the end of loan tenure, as opposed to a traditional personal loan, gives you more time to plan your cash flow with a Flexi loan. This relieves you of huge EMIs that can become a liability. Choose a loan period of your choice and make minimum monthly payments to exercise more power over your finances.
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Apart from all the benefits listed above, you can easily apply for a Flexi loan online in a few simple steps and get funds immediately. Choose from a personal loan or Flexi loan available on Finserv MARKETS and borrow up to a maximum of Rs. 25 Lakhs with loan repayment periods ranging from 12 to 60 months. The loan is approved within minutes after you apply with the required documents.
The amount is transferred to your account within 24 hours of loan approval so that you can meet your needs at the earliest. So the next time you are struggling with finances, do not let the high-interest rates of a personal loan hold you back. Apply for a hybrid Flexi personal loan available on Finserv MARKETS and say yes to financial empowerment as you rewrite your destiny!