What is a flexi loan and how does it differ from traditional loans?
- Posted: 18th June, 2025
- Updated: 18th June, 2025
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A flexi loan or Flexi-Personal Loan is an unsecured loan designed to provide customised short-term financing to individuals to meet urgent needs or expenses. They involve flexible repayment options. Flexi loans differ from regular loans in various aspects. They are:
| Aspect | Flexi Loan | Traditional Loan |
|---|---|---|
| Loan Disbursement | Applicants can withdraw the amount as needed, up to the limit. | The loan is disbursed in a lump sum at once. |
| Interest Payment | Interest is paid only on the withdrawn amount. | Interest is charged on the entire loan amount, regardless of utilisation. |
| Repayment Structure | The repayment structure is usually flexible with customisable repayment options and tenure. | Fixed EMI (Equated Monthly Instalment) and tenure with a set repayment schedule. |
| Usage of Funds | It can be used for multiple purposes with ease. | It is typically used for a specific purpose (e.g., home, car). |
| Loan Limit | It is based on the applicant's credit and needs, and can be utilised and reused. | The loan amount is fixed at the time of disbursement. |
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