Flexi Personal Loans @ Bajaj Finance & Tata Capital
Flexi Personal Loans by Bajaj Finance and Tata Capital offer innovative loan structures allowing borrowers flexibility in usage and repayment. Ideal for variable expenses like education, weddings, or medical needs, these loans enable customers to withdraw funds as required within an approved limit and pay interest only on the amount utilized.
What is Flexi Loan?
A Flexi Loan is a type of loan which allows you to borrow a portion of amount from the full sanctioned loan amount. You can repay the portion of the loan availed along with its interest while the rest of the sanctioned loan amount remains unaffected. Since there is flexibility in repaying the principal amount at your convenience, it is termed as Flexi Loan
Features and Benefits of Flexi loans
Flexi Loans are incredibly beneficial for people who are looking to avail personal loan with a relaxed repayment schedule.
- Easy Fund Approval: Since you’ve already been sanctioned the loan amount, you can get easy access to the funds from it at any time.
- Multiple Withdrawals: You can withdraw funds from the sanctioned loan amount multiple times based on your requirement
- Flexible Repayment: You can repay the principal outstanding amount at the time of your convenience, i.e. at the time you have enough funds
- Lower Interest Rates: A flexi loan comes with the benefit of lower interest rates. You can pay interest only on the amount that you have withdrawn. The interest is not charged on the whole sanctioned amount. For example, if you have been given an personal loan sanction of Rs. 5 Lakhs and you have borrowed only Rs. 2 Lakhs from it, then the lender will charge you interest only on the amount that you’ve borrowed. It would allow you to save on interest rates
- No Collateral: Availing a Flexi Personal Loan does not require a collateral facility
Eligibility Criteria for Flexi loans
- A Flexi Loan is available for both salaried as well as Self-employed individuals with differing eligibility criteria.
- A Lender might take into account several factors while approving your flexi loan, such as age, income, nature of employment, and your credit history.
- A credit score of 750 and above is usually preferred by the borrowers for approving Flexi Loans. Having such a score would help you avail the loan at lowest interest rates. You can always check your credit score for free at our site.
- Existing loan commitments also have an impact on your flexi loan approval
Loan Eligibility Criteria: Salaried vs. Self-Employed
| Criteria | Salaried | Self-Employed |
|---|---|---|
| Age | 21 – 60 years | 22 – 55 years |
| Monthly Income | ₹15,000 (net salary) | ₹25,000 |
| CIBIL Score | Above 750 | Above 750 |
| Employment Stability | Minimum 1 year in current company | Minimum 2 years in current business |
| Minimum Loan Amount | ₹50,000 | ₹50,000 |
| Maximum Loan Amount | ₹25 Lakhs | ₹30 Lakhs |
Comparing Flexi Personal Loans: Bajaj Finance vs. Tata Capital
| Features | Bajaj Finance Flexi Loan | Tata Capital Flexi Loan |
|---|---|---|
| Loan Amount | Up to ₹25 Lakhs | Up to ₹25 Lakhs |
| Interest Rate | Competitive, varies based on eligibility | Competitive, varies based on eligibility |
| Tenure | Up to 60 months | Up to 60 months |
| Interest Payment | Pay interest only on withdrawn amount | Pay interest-only EMIs in the initial period |
| Prepayment Options | Flexible, with part-prepayment options | Flexible repayment terms with interest-only EMI option |
| Documentation | Minimal, quick approval | Minimal, simplified for quick processing |
| Processing Time | Fast loan approval and disbursal | Quick loan processing and fast disbursal |
| Ideal For | Those needing flexibility with prepayments and adjusting EMIs | Borrowers preferring low initial payments with interest-only EMIs |
| Additional Benefits | Dynamic EMI adjustments, part-prepayment with reduced EMI options | Minimal documentation, interest-only EMI to lower monthly outflow |
Documents Required for Flexi Loans
| Category | Documents Required |
|---|---|
| Identity Proof | - Aadhar Card - Passport - Voter ID - Driver’s License |
| Address Proof | - Aadhar Card - Passport - Utility Bill (electricity, water) - Rent Agreement (if applicable) |
| Income Proof | - Latest Salary Slip (if salaried) - Income Tax Return (ITR) - Bank Statements (3–6 months) - Form 16 - Profit & Loss Statement (if self-employed) |
| Employment Details | - Employer’s Certificate - Employee ID (if salaried) |
| Bank Account Details | - Bank Account Statements (3–6 months) - Cancelled Cheque |
| Property Documents | - Property Ownership Documents (if applying for loan against property) - Sale Agreement - Title Deed |
| Other Supporting Documents | - Application Form - Passport-sized Photographs - Signature Verification |
FAQ
1. How can I use a flexi loan?
You can withdraw a partial amount you would need for fulfilling your needs from the sanctioned amount.
2. Are the interest rates for a flexi loan lower than the normal personal loan?
Flexi Loans in general are offered at a lower interest rate than the normal personal loan. However, the interest rates depend on other factors such as credit score, repayment ability, and existing personal loans.
3. Is there a restriction on number of times that I Can withdraw on flexi loans?
No, there is no limit to the number of withdrawals that you can make while availing a flexi loan. However, you can borrow only within the limit of the total loan amount approved
4. Does every bank offer Flexi Loans?
No, not every bank or NBFCs offer flexi personal loans. You will have to check the quotes to know more. Moreover, the eligibility criterion for each entity varies.
5. How is Interest Rates calculated on a Flexi Loan?
The interest is calculated only on the amount borrowed not the whole sanctioned amount. Some lenders charge interest on a daily basis and some follow a different pattern. We would advise you to check with the respective lender about the interest calculation
