Flexi loans have become a popular financing option today owing to the flexibility and convenience they offer. Unlike traditional loans where you receive the entire amount upfront and start paying interest immediately, flexi loans allow you to withdraw funds as needed and pay interest only on the amount used. If you need urgent access to funds for personal or business purposes, you can apply for a flexi loan.
Let us explore how you can apply for a flexi loan online.
What is a Flexi Loan?
A flexi loan is a financial product that combines the benefits of a personal loan and an overdraft. You get access to a pre-approved loan amount, but you only pay interest on the amount you have used. You can withdraw funds as needed and repay at your convenience within the loan tenure.
How to Apply for Flexi Loan Online?
Here is a detailed step-by-step guide to apply for flexi loans:
1. Check Your Eligibility
Most loan providers have basic eligibility criteria related to age, income, employment, and credit history. It is important to remember that these ranges and values are indicative, and they vary depending on the lending institution you choose. Here are some key parameters:
● Age: You typically need to be between 21 and 80* years.
● Income: Usually, loan providers stipulate a minimum monthly income as per their policies and eligibility criteria.
● Employment: You can be a salaried or self-employed professional.
● Credit history: A good credit score (above 750), is usually recommended.
Check the exact eligibility norms of the loan provider you choose, before initiating the application process.
2. Pick a Suitable Loan Amount
Flexi loans offer customisable loan amounts to suit individual financial needs. You can typically obtain loans with the minimum and maximum limits set by loan providers. This flexibility makes this product attractive if you have varying funding requirements.
When opting for a flexi loan, carefully evaluate your situation to decide on an optimal loan amount. Avoid over-borrowing and make realistic assessments of repayment abilities before finalising the loan. Restrict borrowing to necessities rather than wants. Choosing affordable payments aligned with income streams can help ensure responsible usage of flexi loans. Analyse your budget, project costs, and earnings potential when determining a loan amount.
3. Gather Relevant Documents
When you apply for flexi loan online, you are typically required to submit standard identity and residential verification documents. Make sure that you have scanned, digital copies of all necessary documentation prior to initiating the application process to ensure a smooth and efficient approval procedure. Here are some key documentation requirements:
● KYC documents: Aadhaar, Voter ID, PAN Card
● Address proof: Aadhaar, Passport, Rental Agreement
● Income statements: Salary Slips, Bank Statements
● Other: Recent Passport-size Photographs
Documentation requirements and submission procedures vary across different lending institutions. It is therefore recommended that you verify specific document requirements with your chosen lender prior to application submission to avoid delays in the approval process.
4. Check Interest Rates
When seeking a flexi loan, it is wise to compare interest rates and other relevant charges across different lending institutions. Each provider may offer distinct terms and pricing based on prevailing market conditions. Carefully evaluate these aspects and identify the most competitive and economical loan product for your specific needs.
Analyse the annual/monthly interest rate quote along with applicable processing fees or administrative charges for each loan option. Preference for the lowest interest rate alone may be insufficient; also, account for additional costs that may be charged. A comprehensive comparison accounting for total costs enables selection of a loan that best minimises financial burdens through an affordable EMI structure suiting one's budget.
5. Apply Flexi Loan Online
Reputed loan providers have user-friendly websites and apps that enable quick loan applications. The application form requires you to fill in your personal details, income and upload the requested documents. The process hardly takes 10-15 minutes.
6. Get Loan Approval
Your lending institution will verify details and approve the flexi loan application within hours to a few days. Some may request additional documents if needed. You will get loan approval via email/SMS.
7. Complete E-Sign Formalities
Once approved, you may need to digitally e-sign the loan agreement sent by the loan provider and accept the terms and conditions. This completes the documentation.
8. Finish Account Verification
Authorise the loan provider to verify your bank account provided digitally. This facilitates quick disbursal upon loan approval.
9. Get Loan Disbursal
After completing documentation and account verification, the loan amount is usually instantly credited to your bank account within 24 hours.
Tips to Make Your Flexi Loan Application Smooth
Below are some of the tips that will help you to make your flexi loan application process very smooth:
● Maintain a good credit score: Pay EMIs and credit card bills on time to boost your CIBIL score.
● Ensure transparency: Provide accurate details to avoid rejection or delays.
● Compare offers: Don’t settle for the first provider; explore multiple options for the best flexi loan details.
● Read the fine print: Understand fees, charges, and repayment terms to avoid surprises.
● Use digital tools: Leverage net banking or mobile apps for faster document submission.
Conclusion
From an eligibility check to loan disbursal, the whole flexi loan application process is simple, and it could be a quick process if documents are in order. Walk through this step-by-step process, explore available options, and apply online for a flexi loan with trusted providers like Shriram Finance who are known for easy eligibility criteria and fast approvals. Flexi loans provide funds when it is needed due to easy eligibility and quick approvals.
