Flexi Loans vs Personal Loans: What should you choose?

Many people need money to cover expenses like medical care, weddings, travel, or other personal necessities. Several lenders on the market today provide simple loans with competitive interest rates. The users merely need to assess their desired goals and select a loan amount. Pay the fixed EMIs throughout the term later.

However, there are concerns about what would happen if a user did not borrow the full amount but was still required to make significant monthly payments.

The Flexi loan, fortunately, is a solution that provides flexible repayment alternatives and overdraft capabilities. Due to the numerous facilities offered by Flexi loans, many individuals use them for personal loans as well as to meet their needs.

Let’s learn more about Flexi loans for personal loans in the portion of the article that follows, as well as how and why they differ from one another.

What is a Personal Loan?

A personal loan is a type of loan where no security or collateral is required. A user can obtain this loan with just a few pieces of documentation.

The borrower is free to spend the funds for any needs once the loan has been approved. The user must repay the money according to the terms and conditions agreed upon with the bank, just like with any other loan. The repayment can be finished in a few months to a few years with simple calculations.

Flexi loans for personal loans operate similarly to most loans, as was already mentioned. When requesting a loan, the user must provide the required documentation. Before extending a loan offer, the bank will additionally run a creditworthiness check.

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If the user accepts the payments, the bank will instantly deposit those sums into their bank account, where they can be utilised as needed. Customers must, however, make equal monthly payments (EMIs), which change based on the loan’s amount, period, and personal loan interest rate.

What is Flexi Loan?

Loan candidates can borrow money through a Flexi loan, also known as a Flexi Loan for Personal Loan, up to a predetermined cap in the form of an overdraft or credit line facility. Instead of the entire amount approved, only the amount used by the borrower will be subject to interest assessments from the lender.

The original sum can be returned to the lender whenever it is most convenient for the borrower, but they must pay the interest according to the terms and conditions regularly. Due to its convenience, many people choose these financial solutions over personal loans and use Flexi loans in their stead.

Difference Between Flexi Loan and Personal Loan

Term LoanFlexi Loan
Loan amountThe lender credits your account with the full amount of the authorized loan.Your credit limit is set by the lender, and you are free to withdraw from it as needed. Therefore, when you ask for a loan, the amount that is granted is added to your loan account. You are free to leave it whenever you choose.
Interest paymentThe full loan amount will be subject to interest charges.If the amount you withdraw is less than the credit limit authorized by your lender, you will only be responsible for paying interest on that amount.
PrepaymentPrepayment fees must be paid whether you prepay your debt completely or partially.Prepayments are possible with no or minimum fees.
EMI structureA fixed EMI sum that includes both principal and interest will be required of you. A personal loan EMI calculator can also be used to predict your EMI in advance.The loan's terms, tenure, prepayment policy, and withdrawal amount all affect how much you pay in EMIs.
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Benefits of Personal Loan

Quick Approval

While processing a personal loan takes far less time than a home loan, it still takes three to four weeks for a home loan. Most of the time, everything is finished in a single day, and the money is transferred to the bank the following day. Because of this, they are regarded as one of the top money management options for completing urgent cash payment requirements.

No Collateral Requirement

Loans for individuals are unsecured, meaning the borrower is not required to put up any security to obtain one. So, compared to vehicle, home, and other types of loans, personal loans are simpler to obtain.

Develops Credit Score

Taking up personal loans and making on-time payments on them is an excellent way to raise your Credit score if you have a low credit score or are new to the credit market.

Benefits of Flexi Loans


Users of the Flexi loan receive always-available cash as a result of which they can repeatedly withdraw funds up to their credit limit. They do not pay interest on the entire amount or the remaining amount; they only pay interest on the amount that is withdrawn. This is often referred to as a Flexi loan for personal loans because it assists the borrower in resolving financial challenges like the repayment of high-interest debt.

Less EMIs

Flexi Loans offer flexible repayment choices, so the borrower only pays the EMI on the amount they have withdrawn. They will also receive a significant reduction in their interest payment overall. In comparison to fixed EMI plans, these repayment options will result in smaller EMIs.

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Easy Management

Similar to a savings account, a flex loan allows the borrower to take money out of their loan account whenever they need it. Users can also make numerous repayments online in a similar manner.

Flexi loans for personal loans provide a variety of features and advantages. However, Flexi Loan will provide two significant advantages that will enable users to reduce their EMI payments and provide them with the opportunity to make a prepayment without incurring additional fees. Due to the availability of numerous flexible choices, people utilise flexi loans for a personal loans and to lighten their financial responsibilities. If someone needs a Flexi loan, they can visit their local bank branch or search online for the finest financial option.

  • Personal Loan Interest Rates March 2024
    HDFC Bank10.75% - 14.50%
    ICICI Bank10.75% - 19.00%
    IndusInd Bank10.25% - 26.00%
    Kotak Bank10.99%
    RBL14.00% - 23.00%
    SMFG India Credit12.00% - 24.00%
    Standard Chartered Bank11.49%
    Tata Capital10.50% - 24.00%
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