Flexi Personal Loan: What is it & How it Works?

• A flexi personal loan allows you the flexibility to withdraw funds from a preapproved limit when needed.
• Flexi personal loans lead to lower EMIs than regular personal loans.
• Its tenure ranges from 1 to 7 years.
• You can also pay interest as EMIs and the principal at the end of a flexi loan tenure.

A flexi personal loan puts you in the driver’s seat, allowing you to withdraw funds as needed and repay them when possible, with the added benefit of interest being charged only on the utilised amount.It operates through a sanctioned limit, allowing you to borrow from this limit multiple times per your needs without any hassle at lower equated monthly instalments (EMIs) than a regular personal loan.

In this blog, you will learn about flexi personal loan meaning, flexi loan interest rates, eligibility, features, etc.

A flexi personal loan is a variant of a collateral-free personal loan . It has a preapproved cash limit, allowing you to access funds immediately as required.It is a safety net that provides liquidity in an emergency and only requires you to pay interest on the withdrawn loan amount. This saves you from hefty interest rates if you are not utilising the approved funds.

Some key features of a flexi personal loan that make it borrower-friendly are:

• It allows you to withdraw partial or total pre approved loan amounts as per your needs, just like a bank’s overdraft facility. This helps in lowering your EMIs.
• Flexi loan interest rates depend on the loan amount you withdraw only for the time you use it.
• It allows you to repay your loan as part prepayments at your convenience without any extra charges.
• It also allows you to pay interest-only EMIs. This means you can pay interest on your loan amount as EMIs and the principal at the end of the loan tenure.

A flexi personal loan works in a similar manner to a bank’s overdraft facility. You apply for a personal loan with your preferred lender. Once the loan amount is approved, you can withdraw the required amount within the allotted limit multiple times.

You will be charged according to the loan interest rate only on the withdrawn amount. However, you can withdraw the remaining funds within the credit limit instantly without reapplying for a fresh loan.

You are eligible for a flexi personal loan if:

• You are an Indian citizen.
• You are a salaried employee.
• You are between 21 to 60 years of age.
• You have a CIBIL (Credit Information Bureau India Limited) Score of 750 or above.

Aditya Birla Capital offers a lower flexi loan interest rate for a tenure of up to 7 years with no partial repayment charges. Know More : 8 Guaranteed Ways to Boost Your CIBIL Score

To get a flexi personal loan for salaried employees, you must have the following documents:

• Identity Proof: Passport / Aadhaar Card / Voter's ID / Driving Licence / Job Card issued by NREGA / Registration certificate / PAN card.
• Address Proof: Passport / Aadhaar Card / Voter's ID / Driving Licence / Job Card issued by NREGA / Registration certificate.
• Income Proof: The last three salary slips with all deductions and Form 16.
• Bank Statement: The last six months' statement of a salary-linked bank account.
• Other Income Proof: If applicable.

You can apply for a flexi personal loan by following these simple steps:

• Visit the lender’s website .
• Determine your needs, such as loan amount, repayment tenure, etc.
• Check your eligibility.
• Calculate your monthly EMI using a personal loan EMI calculator .
• Submit the necessary documents.
• Apply for a flexi personal loan.
• Get approval within 24 hours if your documents are valid.
• Withdraw the loan amount when you need it.

A flexi personal loan offers unmatched flexibility in using the preapproved loan amount based on your needs. It is fast, affordable, and convenient. You only pay the interest on the loan amount utilised.
If you are looking for a flexi personal loan for salaried employees, visit Aditya Birla Capital . It offers hassle-free flexi loans at affordable interest rates.