Why should I take a Flexi Business Loan?
Flexi Business Loans help to meet the short term and long term financial needs of a business. You can avail of Flexi Business Loans for financing:
- Equipment purchase or lease
- Working capital requirement
- Lease and purchase of premises
- Technological upgrades
- Marketing, research, renovation, and other business needs
What is a term loan?
Manufacturers, traders, entities, self-employed professionals, and service enterprises can avail of Flexi Business Loans.
What is the minimum vintage required?
Bajaj Finserv requires a minimum vintage of 3 years.
How long does it take to get approval for the Flexi Business Loan?
You can get approval for the Flexi Business Loan within 24 hours.
How long does it take for disbursement of the Flexi Business Loan?
Approval of a Flexi Loan generally takes 24 hours. Post-approval, you can withdraw funds from your credit line and transfer them to your bank account in 2 hours.
Is any collateral required for Flexi Business Loans?
Bajaj Finserv Business Loans are collateral-free, unsecured loans. There is no need for a guarantee or a guarantor.
How does a Flexi Business Loan work?
Flexi Business Loans are a facility where you get an approved loan limit for a given tenor. However, you need not borrow the whole loan amount. You can borrow several times as per your business needs' requirements until you reach the limit. You will be charged interest on the amount that you borrow and not the whole loan amount. Secondly, you can only pay the interest component on the borrowed amount as your EMIs. The principal amount can be repaid at the end of the loan tenor.
How many times can I withdraw?
You can withdraw funds from your loan limit several times till the whole amount is utilized. For example, you have a loan limit of Rs. 10 lakh and withdraw Rs. 4 lakh. You will still have Rs. 6 lakh to withdraw, which you can take at one go or in parts. Suppose you repay Rs. 2 lakh (out of Rs. 4 lakh), your balance comes to Rs. 8 lakh.
What is the difference between a Flexi Business Loan and a term?
The main difference lies in the loan amount on which the interest is applicable and the structure of EMIs. In term loans, interest is applicable on the whole term loan, irrespective of how much loan amount you utilize. Term loan EMIs includes both the principal and the interest component. Flexi Business Loans allow you to borrow as you need. The interest is applicable on the borrowed sum and not the whole approved amount. In Flexi Business Loan, you can choose to have the EMIs include just the interest component.
Additional Read: Difference between flexi business loans and term loans
Can I know the premiums before applying for business loans?
Online calculators are available on the website of several lenders. You can get an idea of what the EMIs would be for different interest rates and tenors. Refer to Bajaj Finserv’s online EMI calculator for business loans.
Do business loans come with a Flexi loan facility?
Yes, with Bajaj Finserv, business loans come with a Flexi loan facility. These loans allow you to borrow only as much as you require. Unlike term loans, you need not borrow the whole approved loan limit.
You can borrow as much as you need, and the interest will be charged only on the utilized amount. For example, if you borrow Rs. 3 lakh from your approved loan limit of Rs. 5 lakh, you will have to pay interest only on Rs. 3 lakh.
The second feature of Flexi business loans is that you can pay only the interest amount as Equated Monthly Instalments (EMIs). This further reduces your EMI burden. You can repay the principal component at the end of the business tenor. For example, term loan EMI for Rs. 5 lakh at 12% and tenor 4 years comes to Rs. 15417. For Flexi business loans, the EMIs as per this scenario stands at Rs. 5000.
|Term Loan||Flexi Business Loan (subject to full utilization)|
|Loan amount||Rs. 10 lakh||Rs. 10 lakh|
|Tenor||36 months||36 months|
|Monthly cash flow/ EMIs||Rs. 44,444||Rs. 16,667|
|Yearly loan payouts||Rs. 5,33,333||Rs. 2 lakh|
The table highlights the difference between the yearly outflow for repaying Flexi Business Loans.
Can I make part-prepayment of loans taken?
Yes, part-prepayment can be made for Flexi Business Loans. There are no part payment charges if the total amount you pay in a year is less than 25% of the outstanding principal. However, part-prepayment charges will be levied on the amount paid, which is over 25% of the principal outstanding for the year. For more details, read about the charges.
I have some problems with my credit report from the past; will I still get a loan?
While assessing your credit report, we pursue your current and past credit performance to gain a comprehensive view of the capability of your business to repay the debt. Measures are taken to remedy the red flags, and the negative remarks are also monitored closely.
Is there an online calculator for Flexi Business Loans?
You can use an online calculator to understand what the EMIs would be across the different tenor and interest rates. Refer to our online EMI calculator.
Can I apply online?
Yes, you can apply online, easily. You can also manage your account through our online customer portal.
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