What is a Flexi Personal Loan? What is a Flexi-Personal Loan?
Most forms of financial instruments that cannot be or are not meant to be repaid immediately are included in credit money. Credit may be given by an individual or be given as institutional credit. The dues at the level of individual would be small amounts for basic or essential goods and services.
Without warning, financial emergencies can strike without notice. These financial emergencies can cause serious damage to your finances if you’re not prepared. These emergencies can be overwhelming, and not everyone is ready. Many people are forced to use credit to pay for them.
Banks and financial institutions can offer personal loans to assist you in navigating through difficult situations. Flexi-personal loans are a different type of personal loan than traditional personal loans. The loan amount is not a traditional personal loan. Instead, it’s a personal credit line.
What’s a Flexi Personal Loan?
Flexi-personal loans are personal loans that allow for quick access to funds. You can use it for whatever purpose, up to a pre-approved credit limit.
Flexi-Personal loan – Features
No Collateral Required
- You can get a Flexi personal loan without requiring collateral or security from your lender.
24/7 Access to the Funds
- You can withdraw funds from the pre-approved limit at any time.
Flexible Repayment
- You can repay the borrowed amount in monthly EMIs with a flexible loan term. Some lenders allow you to pay only the interest in the first year.
Multiple Withdrawals
- Withdraw funds whenever you need them, up to the approved credit limit. This is without the need for additional documentation or a loan application.
Get Discounts on Interest
- Flexi-personal loans have one of the greatest benefits: you pay no interest on the amount that you use from your pre-approved credit limit.
What is a Flexi Personal loan?
After assessing your creditworthiness, your lender will determine a loan amount limit once you have applied for a flexible-personal loan. The pre-approved credit limit you are offered is a Flexi personal loan. You are allowed to withdraw funds at any time within your credit limit. Only the amount that you withdraw will be subject to interest. Unutilized credit limit balances do not earn interest.
Eligibility Criteria
Any salaried or unemployed person can apply for a flexible-personal loan. However, eligibility criteria and credit scores may differ between lenders. When assessing flex-personal loan applications, lenders take into account:
- Age
- Income
- Types of employment
- Business continuity and job security
- Existing financial liabilities
Your lender will also review your credit score before approving a loan. A credit score of 750 or higher is recommended for better terms and lower interest rates.
Documents
These are some of the most common documents required to obtain a Flexi personal loan:
Identification Proof
Driving license/Passport
Address proof
Utility bill (not older than 3 months)/Lease/Property purchase agreement/ Driving license/Bank Account Statement/Passport
Income proof
- Salary Individuals– Bank Account Statement/Salary Slips
- Individuals -Previous years’ ITR/Bank Account Statement/P&L statement and Balance Sheet
- Business Proof for self-employed professionals: Filing documents/ Certificate of Practice/Partnership deed/ Shop Act Licence/ MOA & AOA
Note: all documents are included in the above document list. The applicant’s profile may dictate whether or not the lender may request additional documents.
