New Delhi: Loan culture has been rapidly increasing in India. In this article, we will inform you about a loan method which could make your experience even better. Flexi Personal Loan – This is a pre-approved credit loan which allows a borrower to withdraw money as per the need. This loan is mainly used for taking care of unexpected or any emergency expenses. Interest rates are expected to be on the higher side.
Flexi Personal loan is a type of revolving credit. The lenders provide it under a pre-approved limit. Borrowers can withdraw money at any time within this limit. Besides this, the applicant can return it whenever they want. It may be noted that the interest is paid on the amount which is utilised. This loan works like an overdraft. The bank sanctions a pre-approved credit limit. The borrower can withdraw money anytime within this limit.
Flexi-Personal Loan interest rate depends on the loan amount an individual uses and for the term period the loan is kept for use.
“A Flexi Loan is similar to an Overdraft facility provided by banks. As a borrower, you can withdraw the loan amount you require from the credit limit pre-approved by the bank,” ICICI Bank mentioned on its website.
Flexi personal loan allows the lender to charge interest only on the amount withdrawn and the period for which it is withdrawn. There is no restriction on the use of money. This facility reduces interest expenses. Both employed and salaried are eligible for this loan.
Credit score for Flexi Personal loan
The applicant should have a credit score of 750 or more as it improves the chances of loan approval. Documents required for flexi personal loan – Aadhaar Card, PAN Card, Passport, Driving License, Utility Bill, Driving License, Salary Slip, Bank Statement or Form 16, and ITR.
People planning to manage their money in a better way can opt for Flexi personal loan for emergency purposes. It helps in handling financial difficulties, such as meeting expenses of education or illness. Its benefit can be availed only if the borrower uses the loan wisely.
Flexi personal loans offer a revolving credit facility, allowing borrowers to withdraw funds up to a pre-approved limit as needed. It is considered ideal for managing unexpected expenses as these loans charge interest only on the utilised amount. Eligibility typically requires a credit score of 750 or higher, along with standard documentation. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
