Features and benefits
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No additional paperwork
Borrow from your sanction multiple times without repeat applications.
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Zero part-prepayment fee
Part-prepay your loan whenever you can, without incurring additional costs.
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Repay affordably
Choose to pay interest-only EMIs to reduce your monthly outgo by up to 45%*.
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Withdraw freely
Withdraw freely from your approved sanction without the worry of fees or charges.
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Online customer portal
Use the online customer portal, My Account, to handle your loan payments digitally and conveniently.
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Cost-effective
Pay interest only on the amount you utilise and not on the sanction as a whole.
Converting your existing loan into a Flexi business loan is a smart way of managing your finances. When used wisely, you can use the facility to reduce your EMI outgo by up 45%* and free up your finances for other obligations. The conversion process is 100% hassle-free as it takes just a few simple steps. In fact, a quick comparison between a term and Flexi loan indicates that the latter can be a superior option. Here is the Flexi business loan explained in depth.
|
Term loan |
Flexi loan |
Disbursal |
Full sanction disbursed to your bank account |
Loan sanction is made available in the loan account for flexible withdrawal. |
Fees and charges |
Interest is charged on the entire sanction |
Interest is charged daily, only on the amount you withdraw from the loan account. Moreover, your Flexi loan interest rate will be the same as your existing loan. |
EMIs |
EMIs consist of both principal and interest components |
Choose to pay interest-only EMIs and repay the principal at a later part of the tenor. |
To further highlight the value of this facility, consider a loan with the sanction of Rs. 10 lakh, a tenor of 5 years, and an interest rate of 9.75%. The amount used is Rs. 5 lakh.
|
Term loan |
Flexi loan |
EMI |
Rs. 23,790 |
Rs. 13,550 |
Annual outgo |
Rs. 2,85,480 |
Rs. 1,62,600 |
Annual savings |
0 |
Rs. 1,22,880 |
Check Flexi loan interest rate
Eligibility criteria and documents required
To avail of the benefits of this facility, all you have to do is meet the flexi loan eligibility criteria mentioned below:
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Age
24 years to 70 years*
(*Age should be 70 years at Loan Maturity) -
Nationality
Indian
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CIBIL score
Check your CIBIL Score for FREECredit Score should be 685 or higher
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Work status
Self-employed
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Business vintage
At least 3 years
Documents Required
This feature is available to those with an existing business loan and doesn’t require documentation as it is completely digital. However, to apply for a business loan, these are the documents required**.
- KYC documents
- Relevant business financial documents
- Business proof: Certificate of business existence
- Bank account statements of the previous months
Application process
The process to convert and get funding is simple. Here are the steps you should follow during processing.
- 1 Fill out the form with the required information and submit it
- 2 Await contact with loan instructions from an authorised representative
- 3 Benefit from having your loan converted to a Flexi loan
- 4 Withdraw as per your needs and transfer funds to your account within 2 hours
*Conditions apply
**Document list is indicative
