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How Flexi Loans are Revolutionising Lending in India

  • Highlights

  • Flexi loans help take care of unexpected liquidity needs

  • Interest is charged only on the amount utilised

  • No penalties are charged on pre-payment

  • You can make withdrawals without multiple applications

Financial crisis and rising number of NPAs led to tightening of liquidity norms across traditional financing institutes like banks. While this made it a little difficult to avail finances from banks, it propelled the growth of an alternate class of lenders - non-banking financial institutions (NBFCs). Today, NBFCs have brought a radical change in the lending landscape of India not only with relaxed lending norms, but also through innovative offerings such as flexi loans.

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So, what are flexi loans and their benefits? Read on to know how these new-age loans have brought a change in the way you borrow funds for your personal or business needs.

Liquidity as and when needed

Be it in business or personal life, there are instances when you need funds on the go. A sudden medical emergency, or working capital need to maintain day-to-day operations or stocking up inventory, flexi loans allow you to meet unexpected liquidity needs.

With these loans, you can withdraw funds as and when required from your approved loan limit. There’s no need for multiple applications for availing funds. You can simply withdraw the amount needed from your approved limit and transfer it to your account.

Interest only on the amount utilised

Unlike term loans where you need to pay interest on the entire loan amount, flexi loans charge interest only on the amount utilised from the loan limit. For instance, if you use only Rs.5 lakh from your approved limit of Rs.10 lakh, you are charged interest only on Rs.5 lakh and not on Rs.10 lakh. This brings down the monthly EMI thereby aiding you to keep other essential financial goals on track.

Also, certain variants of flexi loans allow to pay only the interest component of the EMI with the option of paying the principal back at the end of the tenor. This further brings down your EMIs.

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Part-prepayment without any extra charge

When your business generates a surplus or you get a windfall such as a bonus, you can utilise a part of it for making part-prepayment. Also, there are no extra charges on the part pre-payment. Thus, part pre-payment not only brings down the loan amount, thereby further reducing EMI, but also helps you save some extra money as you don’t have to pay any charges on it.

Thus, flexi loans are your bet when it comes to addressing instant and unexpected liquidity requirements on personal and business fronts. Not only such loans help you with money, but also ensure your EMIs aren’t too high.

Bajaj Finserv’s Flexi Loan caters to the needs of salaried as well as self-employed individuals and comes with a host of features and benefits. Also, with pre-approved offers on home loan, business loan and personal loan availing finance is a hassle-free affair. Know your pre-approved offer by sharing a few basic details.

The content of this document is meant merely for information purposes. The personal loan features mentioned in this article are subject to updation, completion, revision, verification and the same may change materially based on policy revisions. For more details, please visit our Personal Loan terms and conditions page here.

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