What Is A Flexi-Personal Loan And How Does It Work?
Are you facing a financial crunch? Looking for an instant loan? Flexi-personal loans might be the solution.
Flexi-personal loans, also known as flexible loans are meant for those with urgent money needs. Compared to a personal loan, these loans usually have lower rates of interest. Flexible loans also don’t require a very high credit score.
Most lending institutions don’t offer flexible loans due to the high risk involved. However, there are a few lenders that offer them as an added service. Read on to learn more about how Flexi-personal loans work.
What Is A Flexi-Personal Loan?
A Flexi-personal loan or a flexible loan is a type of loan that can be obtained at a short notice. Today, many lenders provide users with pre-approved cash limits based on their credit scores. You can withdraw cash at any time within the prescribed limit.
Financial emergencies usually come without warning. In such cases, money is required urgently. Hence, there is little time to fill out application forms, submit paperwork, and talk to lenders. In such cases, a flexible loan can be of great assistance.
Today, most lenders provide pre-approved cash limits to their customers. Based on your past transactions, banks evaluate your risk and offer you a fixed cash limit. You can withdraw the cash anytime as per your needs.
How Does A Flexi-Personal Loan Work?
With a flexible loan, you can borrow money on a month-to-month basis. Unlike traditional loans, you can repay a Flexi-personal loan anytime before maturity. There is no penalty for early repayment.
However, there are certain things to keep in mind while applying for a flexible loan. You must be financially stable and have a good credit score. The amount of Flexi-personal loan you can avail of largely depends on your credit score.
The interest rate on a flexible loan depends on two factors, the amount you borrow and the loan duration. The best part about a Flexi-personal loan is that the interest is charged only on the amount you use. Therefore, you can withdraw the loan in various trenches and avoid paying interest on the entire amount.
Advantages Of A Flexible Loan
Here are the benefits of a flexible loan:
- Flexible Terms: You can get a Flexi-personal loan until the loan’s maturity date, making it ideal for short-term funding. You can also get a lower rate of interest with a Flexi-personal loan.
- Does Not Require a High Credit Score: Compared to traditional loans, a Flexi-personal loan does not require a very high credit score. The lender will offer flexible loans based on your past financial history and the ability to repay.
- Easier to Obtain: Less paperwork is required to get a Flexi-personal loan than a traditional loan. Moreover, such Flexi-personal loans can be obtained over the phone, especially if the amount involved is small.
- Faster Funding: After applying, you can get money for a Flexi-personal loan within a day or two. Some lenders may also approve your loan immediately after the KYC is complete. It is very useful if you need money at short notice. However, the application processing time depends on your lender.
- No Asset Valuation: A Flexi-personal loan doesn’t require you to pledge your assets or value them as collateral. It is ideal for those who want to borrow money without showing their assets.
- No Income Verification: You don’t need to provide your income details or salary information when applying for a Flexi-personal loan. It is ideal for those in a financial crunch and who need quick cash.
Things To Keep In Mind While Applying For A Flexible Loan
A Flexi-personal loan is perfect for those who need short-term cash to tide over an emergency.
However, you must keep a few things in mind before applying for a Flexi-personal loan:
- Be Financially Stable: You need to be financially stable and have a high credit score to get a Flexi-personal loan.
- Only Small Amounts: When it comes to a Flexi-personal loan, you can avail of only a small amount. This is because it requires minimal documentation. Also, the application process is short and quick. The lender does not wish to increase its risk. As a result, only small amounts are given as Flexi-personal loans. For large needs, one must consider traditional personal loans.
- Service Charges Involved: Borrowers may need to pay high service charges when availing of Flexi-personal loans. It is charged as a one-time fee by the lender or as a monthly amount during repayment.
Documents Needed For A Flexi-Personal Loan
Here are the documents required for a Flexi-personal loan:
- ID Card: Aadhaar/Driving license/Voter ID or any other government-issued photo identity card.
- PAN: The PAN card is your registration number with the income tax authorities.
- Additional Documents: In some cases, lenders may need additional documents during the KYC process. If you’re seeking a Flexi-personal loan online, you may also need to verify your phone number through a one-time password to confirm your identity.
Final Thoughts
A Flexi-personal loan, as the name suggests, has flexible terms and conditions. It is ideal for those who need cash urgently. Unlike other loans, Flexible loans require minimal documentation and are processed quickly.
To read more about Flexi-loans and related topics, head to the Piramal Finance website.