MSME Loan

3 unique variants

In today's fast-paced world, financial needs often arise unexpectedly, prompting individuals and businesses to seek immediate financial assistance. Our loans address diverse business requirements, such as securing funds for working capital, financing machinery, or investing in technology upgrades. Our business loans come in different variants, each designed to suit unique requirements and preferences. In this comprehensive guide, we will delve into the three primary variants of business loans: Term, Flexi, and Hybrid, exploring their features, benefits, and considerations.

Term Loan: Traditional and reliable

A Term Loan is the classic and most known loan variant. It operates on a straightforward principle: borrowers receive a fixed loan amount and repay it over a predetermined period. During the term, borrowers are required to make regular, fixed monthly payments, which include both the principal amount and interest.

Features of Term Loan.

• Full disbursal in one go: The entire amount is disbursed in full, providing borrowers access to the entire loan amount to manage their expenses.
• Fixed repayment schedule: With a fixed loan term, borrowers can plan their budget accurately, knowing the exact amount they need to repay each month.
• Structured budgeting: This variant encourages disciplined financial planning, as borrowers have a clear repayment plan from the start.

Considerations

• Clarity and simplicity: Borrowers know precisely how much EMI they will pay each month, making budgeting more manageable.

Suitable for specific needs: Term Loans are ideal for fixed expenses, where you know exactly what you are going to spend the money on.

Flexi Term Loan: Pay interest only on the amount withdrawn

Our Flexi Term Loans are designed to offer you maximum control over your finances. With this unique feature, you can access a predetermined credit limit, and interest is charged only on the amount you utilise. You have the flexibility to withdraw and repay funds as needed within the approved limit. This option is perfect for individuals and businesses that experience fluctuating financial needs, providing cost-effective and convenient financing.

Features of Flexi Term Loan

• Assigned loan limit: Borrowers have access to a predetermined credit limit, and they can withdraw funds multiple times up to this limit during the loan tenure.
• Interest savings: As interest is charged only on the amount withdrawn and not on the entire credit limit, borrowers may save on interest costs.
• No part-prepayment charges: Borrowers can choose to part-prepay without any additional charges.

Consideration

Potential temptation to over-borrow: The flexibility of a Flexi Term Loan may lead to overborrowing, potentially increasing the debt burden.

Flexi Hybrid Loan: The best of both worlds

Flexi Hybrid Loan offers a unique blend of flexibility and stability, catering to diverse financial needs. Initially, you pay interest-only EMIs, then transition to EMIs comprising both interest and principal. This hybrid structure offers convenience and flexibility, allowing you to manage your finances effectively throughout the loan term. It also provides the convenience of withdrawing funds as needed. Ideal for individuals and businesses with fluctuating financial requirements.

Features of Flexi Hybrid Loan

• Affordable EMIs: Interest-only EMIs for the initial part of the loan tenure allows borrowers to repay the loan comfortably.
• No part-prepayment charges: Borrowers can choose to part-prepay without any additional charges.
• Assigned loan limit: Just like the Flexi Term Loan, the Hybrid variant also provides borrowers access to a predetermined credit limit, and they can withdraw funds multiple times up to this limit during the loan tenure.

Consideration

Potential temptation to over-borrow: The flexibility of a Flexi Term Loan may lead to overborrowing, especially with interest-only EMIs during the initial tenure.