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Convert Term Loan to Flexi Loan

Convert your Personal Loan to a Flexi Hybrid Loan

Switch your term loan to a Flexi Hybrid Loan at same interest rate

Now, you can convert your existing Bajaj Finserv Personal Loan to a Flexi Hybrid Loan at the same rate of interest – and get benefits such as interest-only EMIs for the initial part of the tenor and unlimited withdrawals and part-prepayments within your available limit.

Simply opt in to convert your ongoing term loan and get a Flexi Hybrid Loan equivalent to the principal outstanding of your personal loan in its place. Your current loan will be closed accordingly, and interest will be charged on the new Flexi Hybrid loan at the same rate as before.

Here's a look at some of the features and benefits of a Bajaj Finserv Flexi Hybrid Loan:

  • Interest_Rate

    No change in interest rate

    Get the Flexi Personal Loan advantage at the same rate of interest as your current term loan

  • Pay up to 45% lower EMI

    Lower your EMIs by up to 50%*

    Pay only interest as EMIs for the first 12 months of the loan tenor and lower your monthly EMI amount by up to half

  • Withdraw and part-prepay easily

    Get the option to part-prepay surplus funds and withdraw within the available limit, whenever you need more money – at no charges

  • Flexi Term Loan facility

    Pay interest on what you use

    Pay interest only on the loan amount that you utilize, for the initial part of your loan tenor

  • No documents needed

    Get your loan converted to a Flexi personal loan without submitting any additional documents

  • Hassle-free online process

    Initiate the switch in a simple, completely online process in just a few clicks.

How is a Flexi Hybrid Loan different from a term loan?

When you take a personal loan with a regular repayment plan, your EMIs comprise a principal component, and an interest component. The amount you pay as EMI remains the same each month, for the entire duration of the repayment tenor of your term loan. You can part-prepay your loan when you want, but you cannot withdraw funds from it again.

When you opt for a Bajaj Finserv Flexi Hybrid Personal Loan, however, you get flexibility for both repaying the loan, and utilizing the loan amount. The loan amount will be transferred to your account – you can keep the amount you need and make a part pre-payment for the amount you don’t intend to use.

During this period, interest will be charged on only the utilized amount. You can also pay only the interest amount as your EMIs in this time, which helps you save on your monthly outgo as well. Regular EMIs, with the principal component included, begin after this initial period of the tenor.

Read more about the differences between term loans and Flexi Personal Loans and make an informed decision today.

FAQs

What are the benefits and advantages of converting my personal loan to a Flexi Hybrid loan?

There are several benefits to converting your existing personal loan to a Flexi Hybrid loan:

  • Reduction in monthly EMI outflow, as you need to pay only interest as EMIs for the initial part of the repayment tenor
  • Savings on interest cost, as interest is payable only on the utilized loan amount
  • Flexibility to pre-pay the loan with surplus funds at no extra cost and thus save on interest
  • Facility to withdraw the pre-paid amount within the available limit at any time within the loan tenor without any additional documentation
  • No change in rate of interest from your existing loan
  • No additional documentation required

How is the EMI calculated for a Flexi Hybrid loan?

  • During the initial part of the repayment tenor, the EMI consists of only the interest on the loan amount you have utilized.
  • During the subsequent part of the tenor, the EMI consists of both principal and interest components
  • Throughout the loan tenor, interest is only charged on the loan amount utilized by you
  • Interest for Flexi Hybrid loans is calculated on a daily basis, which means that if you make a part payment towards the loan or withdraw from the loan, interest will be charged accordingly on the loan amount utilized per day.

Example:

Loan amount Rate MOB Term loan EMI amount POS for conversion to Flexi loan Hybrid Flexi EMI amount for initial tenor EMI reduction
4,00,000 20% 0 12,172 4,00,000 6,667 45.22%
4,00,000 20% 12 12,172 3,27,529 5,489 54.90%
4,00,000 20% 24 12,172 2,39,158 3,986 67.25%
4,00,000 20% 36 12,172 1,31,400 2,190 82%
• Term loan tenor assumed at 48 months
• Hybrid Flexi loan tenor assumed at 60 months (12 months initial tenor + 48 months subsequent tenor)

What will be the ROI applicable on the new loan?

The annual rate of interest applicable on your Flexi Hybrid loan will be the same as your existing personal loan.

Are there any additional charges applicable for term to Flexi Hybrid loan conversion?

You will have to pay a nominal processing fee for loan conversion and stamp duty as applicable.*

The new loan amount will consist of – Principal outstanding of your existing loan + processing fee for loan conversion + stamp duty as applicable.

*Any other charges, if applied, will be specified in the loan agreement.

Are there any extra charges levied for part-payment or withdrawal?

You can process as many withdrawals as you want, within the approved limit and part-payments, without any extra cost.

What are the applicable foreclosure charges on Flexi Hybrid loans ?

Foreclosure can be processed post the clearance of one or six EMIs as specified in the agreement, basis your loan type.

The foreclosure charges applicable will be 4% plus applicable taxes plus cess on the total withdrawable amount as on the date of levy of these charges.

Is this proposition of loan conversion from term to Flexi Hybrid applicable for all customers?

Currently, the benefits of this offer can only be availed by our select pre-approved customers.

Will my loan account number change if I request for a term to Flexi hybrid loan conversion?

Yes, your loan account number will change once your personal loan has been converted from a term loan to a Flexi Hybrid loan.

Do I need to submit any documents for loan conversion from term loan to Flexi-Hybrid loan?

You do not need to submit any additional documentation in order to convert your term loan to a Flexi Hybrid loan.

In case of any change in ECS or bank details, however, you will need to register a fresh mandate with Bajaj Finance using the ENACH process.

Will the new Flexi Hybrid loan be booked with the same principal amount as that of my old loan?

No, the new loan amount will consist of the principal outstanding of your existing personal loan + processing fee for loan conversion + stamp duty as applicable.

Will any amount get disbursed into my bank account?

There will not be any disbursement into your bank account as this is a conversion loan.

In case of change in ECS/banking details, what do I need to do?

In case of any change in ECS/banking details, you will need to register a fresh mandate with Bajaj Finance using the ENACH process.

Do I need to submit a fresh e-agreement/CMITC?

Yes, a fresh e-agreement/CMITC needs to be executed for processing the loan conversion.

Will previously paid EMIs be adjusted in this loan?

As this is a conversion loan, only the outstanding principal from your existing loan and applicable charges will constitute the total loan value. EMIs paid on your existing loan will already be adjusted in this amount. Hence, you will need to pay regular EMIs for the entire tenor as mentioned in the fresh loan agreement.

What would be my instalment payment date?

Your new loan installment/EMI payment date will be as intimated to you in the loan agreement and welcome letter.

How do I make a part payment on my Flexi Hybrid loan?

You can make a part payment via the customer portal – Experia. To know how the process works in detail, view this video: https://www.youtube.com/watch?v=mXmvDaci-PM

How do I request for a withdrawal on my Flexi Hybrid loan?

You can request for a withdrawal from your loan account subject to the available limit on the loan. Considering that the new loan amount is booked against the outstanding principal of your existing loan, you will be eligible for withdrawal only if you have made a part payment towards your account first.

The withdrawal will be processed via the customer portal – Experia.

To know more about the process in detail, watch this video – https://www.youtube.com/watch?v=tugEdMf4OeQ

How and when do I receive the login credentials for my customer portal/Experia account?

Your customer portal/Experia credentials will be the same as your account credentials for your existing personal loan prior to conversion. You can also login to your customer portal account using your Bajaj Finance registered mobile number and an OTP.

When can I make the first part prepayment?

The first part prepayment can be made post 48 hours of the loan booking.

How many times can I make a part prepayment?

There is no limit to the number of part prepayments you can make on your Flexi Hybrid loan, as long as the payments are within the loan sanction.

How many times can I withdraw from my Flexi Hybrid loan in a day?

Currently you can make a maximum of five withdrawals a day, subject to the available withdrawal limit on your loan.

Can I withdraw and part prepay in the same day?

Yes, you can withdraw and part prepay in the same day, provided the previous transaction has been completed.

In how much time will the withdrawal money be credited to my account?

Bajaj Finserv uses RTGS/NEFT for money transfers. The withdrawn amount will be credited to your account within the stipulated time as per banking guidelines.

I have made a part prepayment before my EMI date. Do I still need to pay my instalment?

Yes, the EMI instalment will be deducted on the due date, irrespective of the part-prepayment amount, since the EMI is recovered on the amount utilized during the billing period.

Under what scenarios is the Flexi loan facility blocked for usage?

Your usage of the Flexi loan facility can be blocked due to:

  • Bounce of your monthly EMI with Bajaj Finance Limited or other any other financial institution
  • A drop in your credit score
  • A change in your employment
  • A change in your contact information (unless intimated in advance to Bajaj Finance Limited).

How will I be intimated of any changes in my loan?

We will keep you updated on your loan account through multiple communications triggered via SMS, e-mail, and our customer portal – Experia. Some of the key communications you receive will be:

  • A welcome letter with the loan details and the steps to complete part payment and withdrawal from your loan account
  • EMI payment reminders
  • Alerts on any part prepayments or withdrawals you have made
  • Communication regarding a change in your repayment tenor, and related changes in your EMI amount for any reason