Flexibility in finance can often feel like a luxury, but with the rise of flexi loans, it’s becoming an accessible reality for many. So, what exactly is a flexi loan? At its core, a flexi loan offers you the freedom to borrow money up to an approved limit and repay it at your convenience. Imagine having access to funds whenever you need them without the stress of rigid repayment schedules.
There are two main types of flexi loans that cater to different financial needs:
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Flexi Term Loan: This variant allows you to withdraw from your sanctioned amount as needed. You only pay interest on the amount you've actually used—this means if you're careful about how much you draw down, your costs remain manageable. The monthly EMIs (Equated Monthly Installments) consist of both principal and interest components, which makes budgeting straightforward.
One interesting feature here is that each time you withdraw money from this line of credit, your available balance decreases accordingly. If life throws some extra cash your way—perhaps through bonuses or savings—you have the option to part-prepay towards the principal sum. However, keep in mind that while this reduces what you owe immediately, it doesn’t replenish your credit line back up again.
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Flexi Interest-Only Loan: This option takes flexibility one step further by allowing borrowers to pay only interest during their repayment period while deferring principal payments until later on—or even making partial prepayments when they have surplus funds available.
With both options designed for those who value adaptability in their finances, it's easy to see why these loans are gaining popularity among individuals seeking tailored solutions rather than one-size-fits-all products.
Whether you're looking at financing home renovations or managing unexpected expenses without being tied down by traditional lending structures, fexible borrowing can provide peace of mind and financial agility.