All about Flexi Personal Loan

For a long time, personal loans were mainly used to tackle emergencies, like urgent hospitalization or home repairs. But like everything else, these loans have evolved tremendously. With easy application processes and reasonable interest rates, personal loans today are an increasingly sought-after financial product – perfect for fulfilling goals that would have otherwise taken much more time and savings.

Ready to take control of your finances with smart flexibility? Check offer in 2 steps and see how a Flexi Hybrid Term Loan can reduce your monthly outgo while giving you the freedom to borrow and repay as per your convenience. Smart borrowing has never been this easy.

Pay interest-only EMIs for the initial part of the repayment tenure of up to 2 months and reduce your monthly outgo with the Flexi Hybrid Term Loan facility. A personal loan can easily bridge the gap when you fall short of money. It could be taken for any personal reason – from financing a dream vacation to buying the latest smartphone or even helping you set up a comfortable home in a new city. And with innovative new features like the Flexi loan facility, you have the amazing option of managing your installments in a way that perfectly suits your budget and lifestyle.

When you choose the Flexi facility of a Bajaj Finance Personal Loan, you get assigned a pre-determined loan limit that works like your personal credit line. While you're completely free to borrow as much money as you need from this limit, the Flexi Hybrid Term Lan facility offers you the smart option to pay interest-only EMIs, for an initial tenure of up to 2 months, after which the EMIs comprise of both, the principal and the interest.

Why this matters: Interest-only EMIs mean you pay much smaller amounts initially, giving you breathing room to manage other expenses or investments. Once you're financially comfortable, you can start paying towards the principal too.

Let us consider this practical example: Say you have recently moved to a new city for a job or other opportunity.

You need financing to pay for furniture, décor, remodeling, security deposits, and other expenses that come with setting up a new life. The traditional way to manage this would be to dip deep into your savings or swipe your credit card for every single expense. But you may want to keep your savings intact for true emergencies. And those exorbitant credit card interest rates (18-42% annually) are definitely not advisable for large expenses. This is exactly where a Flexi Hybrid Term Loan can make a world of difference to your financial planning.

You are completely free to make multiple withdrawals from the total loan amount assigned to you, whenever you need money. And with the interest-only EMI option, you can choose to pay only the interest component of your loan every month during the initial period. The principal amount can be comfortably paid during the later part of the tenure when you're more financially stable.

Pro tip: This flexibility is perfect for people starting new jobs, freelancers with irregular income, or anyone who expects their financial situation to improve over time.
Only 2 steps to check your eligibility

Additional read: How to apply for Personal Loan

With Flexi loans, you only pay interest on the exact amount you actually withdraw, and not the whole loan amount that was sanctioned. This smart feature helps you significantly lower the total amount you pay as interest over time.

For instance, let's say you want to avail of a Flexi personal loan to manage the expenses of a dream family vacation to Europe. For easy understanding, let's assume you get approved for Rs. 15 lakh at 15% interest over a comfortable repayment tenure of 5 years.

Now, from this assigned amount of Rs. 15 lakh, say you only ended up withdrawing Rs. 10 lakh for your actual travel expenses like flights, hotels, sightseeing, and shopping. If it were a traditional term loan, you would be charged interest on the entire Rs. 15 lakh from day one, which would mean a hefty EMI of Rs. 35,685 every month.

But since it's a smart Flexi personal loan, you pay interest only on the Rs. 10 lakh that you actually utilized. Based on the amount you have used, you are likely to pay a much more manageable EMI of only Rs. 23,790. You can also use the EMI Calculator to calculate your EMIs instantly without any hassle and plan your budget accordingly.

Additional read: Loan disbursement process

When you compare the two EMIs (Rs. 35,685 vs Rs. 23,790), you can clearly see that the overall savings are pretty significant – you save almost Rs. 12,000 per month. That's money you can use for other goals or simply keep as emergency savings.

Smart insight: This feature is especially beneficial for people who aren't sure of their exact funding requirements or those who want to keep some credit available for future needs.

Flexi loans also give you the wonderful option to prepay your loan whenever you have extra funds in a particular month – maybe from a bonus, tax refund, or any other windfall. This flexibility helps you reduce your total repayment tenure significantly and save thousands on interest payments.

The best part? You can make part-prepayments on your loan throughout the entire tenure at absolutely no additional charges. Many traditional lenders charge hefty prepayment penalties, but Flexi loans are designed to reward you for paying faster.

Why this matters: Every prepayment you make reduces your outstanding principal, which means lower interest calculations for future EMIs. It's a smart way to become debt-free faster while saving money.

Real-world example: If you receive a Diwali bonus of Rs. 50,000, you can immediately put it towards your loan without worrying about penalties. This reduces your outstanding amount and saves you interest for the remaining tenure.

So, whatever your financial needs or goals, consider a Flexi personal loan from Bajaj Finance as your flexible financial partner. Make use of your pre-approved offers on personal loans, home loans, business loans and other financial products, and get the money you need on terms that actually work for your unique situation.

All you have to do is share your basic details, check your pre-approved loan offer and get the money you need with the flexibility you deserve.