What makes Flexi Hybrid Loan a better option

With our Flexi Hybrid Loan, pay lower instalments with interest-only EMIs.
What makes Flexi Hybrid Loan a better option
4 min read
28 Sep 2022

When you take a term loan, you borrow an amount for a set period of time, with a fixed repayment schedule. On approval of your application, the lender will transfer the entire loan amount to your bank account. Here, you will have to pay the interest on the full amount. Your EMI consists partly of the loan principal and partly of the interest amount.

While your EMI remains the same, the split between interest and principal changes over the course of the repayment schedule. In the initial period, the interest component is higher than the principal and it reduces over the tenure.

This is the most basic form of a loan that you can get.

If you are looking for a loan wherein you can withdraw from your sanctioned loan amount as many times as you want and prepay whenever you want, as many times as you’d like, you can choose our Flexi Hybrid Loan.

Here are many more reasons why our Flexi Hybrid Loan is better than a term loan:

Use only what you need

With a Flexi Hybrid Loan, you are approved for a defined loan amount. For example, Rs. 5 lakh.

You can withdraw from this approved loan amount whatever sum you may need. For example, on a given day, you withdraw Rs. 2 lakh and choose to pay this back over two years.

Rs. 3 lakh continues to stay pre-approved for you and you have the freedom to withdraw Rs. 3 lakh or less whenever you need to.

Pay interest only on what you’ve withdrawn

In a Flexi Hybrid Loan, the interest is charged only on the amount you have withdrawn from your pre-approved loan amount. For example, if you withdrew Rs. 2 lakh, you will be charged interest only on that amount.

Compared to this, in a term loan, you would have had to pay the interest on the entire amount that you would have borrowed. For example, Rs. 5 lakh for two years.

Withdraw as many times as you want, prepay as many times as you’d like

With our Flexi Hybrid Loan, you have the flexibility to withdraw from your sanctioned loan amount as many times as you’d like over the tenure of the loan. For example, after withdrawing Rs. 2 lakh initially, you may withdraw another Rs. 1 lakh three months later.

Additionally, you can choose to pay back a part of what you’ve borrowed. For example, you borrowed Rs. 3 lakh. (Rs. 2 lakh initially + Rs. 1 lakh three months later).

You can pay back Rs. 50,000 six months later, another Rs. 2 lakh next month itself, and the rest, at the end of two years. This is just one illustration. You can enjoy the flexibility of many such permutations and combinations as per your preference.

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