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Tata Capital > Blog > Personal Use Loan > Lower your EMIs with a Flexi Personal Loan

Personal Use Loan

Lower your EMIs with a Flexi Personal Loan

Lower your EMIs with a Flexi Personal Loan

Everyone takes a personal loan at some time in their life. Cash crunches arise, projects become infeasible, or you might need to pay a family member’s medical bills. It happens to the best of us.

Luckily, many personal finance lenders in India offer loans at affordable personal loan interest rates. However, even with low rates, the EMI amount can total to a hefty amount. Besides, there are situations where you know that you want money, just not how much. For instance, funds for keeping your business afloat.

In such scenarios, a flexi loan for personal use might be the better alternative. Don’t know what they are? Keep reading.

What is a flexi personal loan?

In a flexi loan, also known as the flexi hybrid loan, the lender credits a predetermined loan amount into your bank account, from which you can borrow as much as you want, whenever you need it. The best part? You can choose to pay only the interest part of the EMI initially and the principal part after a certain period of the tenure is up.

This ensures that you don’t have to pay hefty EMIs, and you can borrow any amount depending on your financial state and requirements. As a result, the flexi personal loan never feels like a burden. But more like a credit card, minus the high rates of interest.

Additional Read: Flexi Loan vs Personal Loan Know the Difference

6 major advantages of a flexi hybrid loan

A Flexi personal loan, as mentioned before, has a pre-approved credit limit, which you can use for any purpose, as and when you need.

Plus, if you're looking to avail of instant funds, a flexi personal loan is the way to go because of the following advantages.

#1. Lower Emi

With a flexi loan, you can withdraw only the amount you need from your approved credit limit instead of taking the entire loan amount at once. This helps to lower your EMI payments and saves you on interest costs.

This is one of the biggest upsides to flexi hybrid loans.

#2. Pay interest only on what you borrow

Another great benefit of a flexi loan is that you have to pay interest only on the borrowed component, and not the entire loan amount.

For instance, if you’ve taken a flexi loan of Rs. 5 Lakh on a 10% interest rate, of which you only need Rs. 1 lakh, the interest will only be charged on Rs. 1 lakh. This brings down your EMI significantly from what you would have to pay on the full amount, which again decreases the total loan cost.

#3. Multiple withdrawals

You can make multiple withdrawals from your approved credit limit as often as you want without needing to reapply for a new loan or submit additional documentation.

#4. No collateral is required

A flexi personal loan doesn't require you to provide collateral or security to the lender. This makes it an attractive option for those who don't have any assets to pledge.

#5 Repay your loan faster

Personal finance lenders usually charge a prepayment penalty if you try to foreclose your loan. Depending on how long you’re into the tenure, this foreclosure charge may or may not eat into your monthly budget. Either way, you lose money all the same.

However, with a flexi loan, you can service the principal amount as and when you see fit. For instance, if you have surplus funds in a given month, you can use that to reduce your outstanding principal amount. This can help you reduce the loan tenure and the overall EMI burden.

#6. Get access to funds 24//7

You can withdraw funds from your pre-approved limit anytime, giving you quick and easy access to cash when needed. This is particularly helpful in emergencies or unexpected expenses.

Additional Read: Dos and don’ts for an instant personal loan in India

Your turn

As you can see, Flexi loans are a great way to cover an ongoing financial requirement, such as home renovations, wedding expenses, or business requirements. Not only do you pay lower EMIs, but you also have the flexibility to pay interest only on the amount you borrow.

Like what you hear? Well, then opt for Tata Capital’s flexi loans today! Flexible tenures, attractive interest rates, easy personal loan eligibility, and excellent customer service – that’s why you get when you opt for our flexi loans!

Before applying, do use our personal loan EMI calculator to decide on a favourable tenure.

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