Flexi Personal Loan

A Flexi Personal Loan is a personal loan where the maximum credit limit is set by the lender. A borrower can withdraw the loan either in full or in part within the loan tenure and repay at their convenience. Flexi loans can be thought of as a bag of funds. The bag has a maximum limit, but within those limits, a borrower can extract and refill as per their comfort.

Let us say a borrower borrows a flexi-term loan of 10 lakhs. And they encounter an urgent, unavoidable expense of 2 lakhs. A flexi loan would allow the borrower to withdraw these 2 lakhs from the total loan amount of 10 lakhs. The interest will be charged only on the withdrawn amount, which can be repaid at any point during the loan’s tenure.

The term ‘flexi’ stands for flexible. These loans aim to offer the benefits of a personal loan to borrowers at much more flexible terms. Stay with us as we discuss the complete details, such as the Flexi loan interest rate, eligibility, documentation and much more.

Get in Touch for Personal Loan Expert Advice

Connect with our Personal Loan Advisor Now!

Personalized Personal Loan solutions
Expert guidance
Application assistance
Credit score discussion
Personal Loan Interest rate comparison

Full Name

+91Mobile No.

Choose City

I agree to the Terms and Conditions of TUCIBIL and hereby provide explicit consent to share my Credit Information with Urban Money Private Limited.

Table of Content

1. Features and Benefits of Flexi Personal Loans

2. Interest Rate for Flexi Personal Loan

3. Flexi Loans vs. Traditional Loans

4. How Does the Flexi-Personal Loan Work?

5. Eligibility Criteria

6. Documents Required for a Flexi Personal Loan

7. Apply For Flexi Loans With Urban Money

Written By

Amrita Sinha

Amrita Sinha comes with a background in journalism and mass communication, drawing from her roots in journalism, she has found her voice in the world of finance. As an accomplished writer, she specialises in Financial Services, Mutual Funds, Loan Assessments, Banking & Loan Products. She has established herself as a reliable expert in the field, offering valuable advice to those looking to navigate the various aspects of personal finance.

Reviewed By

Amit Prakash Singh

Co-Founder, Square Yards & Chief Business Officer, Urban Money

Amit Prakash Singh is the Chief Business Officer at Urban Money. With over nine years of experience at Square Capital, he has played a crucial role in establishing it as one of India's premier loan advisory services. Amit's deep financial insights and extensive knowledge have driven significant business growth and strategic advancements. He has successfully built and managed large sales teams, optimised costs, and created leaders within the industry. Amit's financial expertise and strategic vision are key to the ongoing success and expansion of Square Yards and Urban Money.

Features and Benefits of Flexi Personal Loans

Some of the striking features of these loans are listed below:

Immediate Assistance: These loans offer ready financial assistance for emergencies and unforeseen expenses.
Withdraw More Than Once: Flexi Loans allow borrowers to withdraw required amounts (within the sanction limit) multiple times, as and when needed.
Interest Only On the Used Amount: Interest is charged only on the used portion of the credit and not the entire limit. This results in greater interest savings and lower monthly EMIs.
Flexible Repayments: The outstanding principal amount can be repaid as and when possible within the tenure. Borrowers can also juggle swiftly between interest-only EMIs and principal repayment.
Pre-payments: Flexi Loans can be prepaid at no additional charges.

Interest Rate for Flexi Personal Loan

The flexi loan interest rate varies from bank to bank, and there is no standard rate of interest. The interest is charged monthly on the withdrawn amount until it is duly repaid. For instance, on a flexi loan of 10 lakhs, out of which, a borrower has withdrawn only 2 lakhs, the interest will be charged only on the withdrawn amount i.e 2 lakhs.

Flexi Loans vs. Traditional Loans

Here is a quick comparison between flexi loans and traditional personal loans.

Basis	Flexi Loan	Traditional Personal Loan
Purpose	To take care of unforeseen financial requirements	To cater to a wide range of personal expenses
Loan Disbursement	A set limit of credit is disbursed out of which borrowers can withdraw as per their need	The entire amount is disbursed at once
Loan Usage	Multiple withdrawals and multiple repayments are allowed	The loan amount can be withdrawn only once
Interest Charges	Interest charged only on the used portion	Interest charged on the entire loan amount
EMIs	Greater flexibility while repaying interest as well as principal component of the loan	Fixed EMI plans consisting of interest as well as principal component
Prepayment Charges	No charge applicable	Prepayments are subject to additional charges
Overall savings	Higher savings	Comparatively Lower savings

How Does the Flexi-Personal Loan Work?

Flexi personal loan’s interest treatment differentiates it from other loans. Firstly, the borrower is offered the flexibility to use only the necessary portion of the loan without worrying about the rest. Secondly, the interest is accrued only on this used amount while the rest of the loan goes interest-free. This, ultimately, results in better financial assistance and overall interest savings at the same time.

Moreover, multiple withdrawals and simultaneous repayments characterise these loans and create a revolving line of credit.

Eligibility Criteria

Applicants satisfying the following criteria can easily apply for a flexible personal loan:

Eligible Applicants: Salaried/ Self-Employed
Age: 18-70 years*
Nationality: Indian
High Credit Scores
Other Criteria as specified by the lender

*Age Limit criterion differs for every lender

Documents Required for a Flexi Personal Loan

A borrower must keep the following documents handy while applying for a Flexi loan:

KYC Documents: Identity Proof (Aadhar Card, Voter’s ID) and Address Proof (Utility Bills, Driver’s Licence)
Income Proofs: Salary Slips/ IT Returns/ Balance Sheet and P&L Account/ Bank Statements etc.
Employment Proof: Employee ID/ Proof of Business Registration/ Other Documents

Apply For Flexi Loans With Urban Money

Urban Money’s expert team offers complete guidance to flexi loan borrowers. We match the financial standing of our customers with the best bank suitable for them to help secure the best deal. Call us at 1800 208 3344 to get instant approvals.