How Does the Repayment Process for a Flexi Loan Work?

The repayment process for a Flexi loan typically works as follows:

• Interest Payment: You only pay interest on the borrowed amount, not the full sanctioned limit. Interest accumulates each month or as stated in your loan agreement.
• Principal Repayment: A Flexi loan allows you to repay the principal amount in instalments over time or even as a one-time payment—whatever works best for your finances. This flexibility helps you better manage cash flows.
• EMI Conversion: You can convert the loan to Equated Monthly Instalments (EMIs), which split the borrowed amount into fixed, equal monthly payments.
• Prepayment: You typically can pay back part of the principal or the entire principal before the schedule. Many loan providers do not charge prepayment fees.
• Repayment Tenure: As laid out in the loan agreement, the total outstanding amount, including the original principal plus accumulated interest, must be repaid within your committed tenure.
• Payment Modes: Repayment can be made via electronic bank transfer, standing instructions, or other modes your loan provider allows.
• Late Payments: Missed instalments may result in late fees or penalties, as per the loan contract terms, so make a note of due dates.