Financial problems might occur at any time and not everyone has enough cash on hand to deal with such a situation. Some might even feel driven to use credit to cover unexpected costs. But, during emergencies and financial crisis, a personal loan may be a lifesaver. It’s an unsecured loan that can be used for any personal cause, such as medical bills, house improvements, or even automobile purchases. Flexible personal loans, which are similar to personal loans given by numerous financial institutions but have certain unique features, are becoming increasingly popular. So, let’s discuss what is a flexible personal loan & how it can help you out.
What is Flexible Personal Loan?
A flexi personal loan is identical to a conventional loan, with the exception that the cash outflow is capped. In a nutshell, it operates like an overdraft, allowing you to borrow funds up to a pre-determined monetary limit set by your lending institution. You can withdraw cash up to a certain limit, and you can quickly borrow funds as needed.
Features of a Flexible Personal Loan
- A flexible loan is a pre-approved loan with an immediate disbursement method to make money available when needed.
- A flexible loan does not require any additional paperwork because it is pre-approved. In a nutshell, it is simple to use and available right away.
- You are permitted to borrow any amount up to the sanctioned limit. If you have a sanction of Rs 5 lakhs, for example, you can apply for a flexible loan of Rs 3 lakhs or any amount less than Rs 5 lakhs.
- Only the amount removed is subject to interest. Furthermore, when compared to other personal loan alternatives, the interest rate on a flexible loan is generally lower.
- You may withdraw cash as often as you like and don’t have to fill out a new application every time a demand arises, saving you time. This may or may not be the case with other types of loans.
- It is possible to repay the principal amount according to your flexibility under the flexi plan. You may budget your income properly and pay back the loan as soon as your cash flow allows.
- If you foresee a regular increase in income in the near future, a flexible loan is usually advised. You can progressively increase your EMI payment dependent on your financial stream with this plan. For those who have a steady income, a standard personal loan plan is a better option. It is worth noting.
In an emergency, a flexible personal loan might be a good alternative since you can withdraw the amount you want whenever you want, as long as it doesn’t exceed the upper limit. Some lenders may even process and release the loan funds within 24 hours of receiving the application. But remember, before you make a financial commitment with anyone, make sure to examine the lender’s reputation and not just fall for marketing tricks.