Know the uses for Flexi Business Loans
Learn about approval, disbursements and collateral requirements
Learn how Flexi loans differ from term loans
Know how you can benefit from part-prepaying your loan
Flexi Business Loans help to meet the short term and long term financial needs of a business. You can avail 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
Manufacturers, traders, entities, self-employed professionals, and service enterprises can avail Flexi Business Loans.
Bajaj Finserv requires a minimum vintage of 3 years.
You can get an approval for the Flexi Business Loan within 24 hours.
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.
Bajaj Finserv Business Loans are collateral-free, unsecured loans. There is no need for a guarantee or a guarantor.
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 as per the requirements of your business needs, several times, till 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.
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 you 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.
Flexi Loan for Business
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
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.
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 just as much as you need, and the interest will be charged only on the utilised 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 choose to 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. | 10,00,000 | 10,00,000 |
ROI (illustrative) | 20% | 20% |
Tenor | 36 months | 36 months |
Monthly cash flow / EMIs Rs. | 44444 | 16667 |
Yearly loan payouts | 533333 | 200000 |
The table highlights the difference between the yearly outflow for repaying Flexi Business Loans.
Yes, part-prepayment can be made for Flexi Business Loans. There are no part payment charges if the total amount that 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 and above 25% of the principal outstanding for the year. For more details, read about the fees and charges.
While assessing your credit report, we persue your current as well as past credit performance, to gain a comprehensive view of the capability of your business to repay the debt. Measures taken to remedy the red flags, and the negative remarks, are also monitored closely.
You can use an online calculator to get an idea of what the EMIs would be across the different tenor and interest rates. Refer to our online EMI calculator.
Yes, you can apply online, easily. You can also manage your account through our online customer portal, Experia.