Why Should One Take a Flexi Loan Instead of a Term Loan_Revised V1

Why Should One Take a Flexi Loan Instead of a Term Loan?

In business and personal life, contingencies can arise any moment where you need immediate cash. In such a scenario, Flexi Loans are your best bet. Let’s find out why you should take a Flexi Loan instead of a term loan:

Instant availability of a credit line

Instant availability of cash, when you need it the most, is one of the highlights of these loans. Unlike term loans, where it takes some time for the arrival of funds, you get capital within the shortest possible time in Flexi Loans.

This allows you to address contingencies with ease. In Flexi Loans, you get a credit line that you can use as per your need, and pay interest only on the amount utilised. In term loans, you get a lump sum amount for which you need to pay interest on the whole amount.

Financial flexibility

Flexi Loans give you the financial flexibility to use money as and when required. As you get a credit line, you can withdraw the money within the limit as per your needs, as many times as you need. Be it buying new equipment for your business or a medical emergency, these loans act as a continuous channel of finance.

They also give you the flexibility to transact according to your cash flow needs. When you have extra cash you can part-prepay the borrowed amount and withdraw it again if you need it later. However, though you can part-prepay in a term loan, when you have extra cash, you can’t withdraw it back when required. To avail the funds again, you need to apply for a top up loan.

No heavy EMIs

Since you have the option to pay interest only on the amount utilised in Flexi Loans, you can save on your EMIs. However, the EMIs for term loans consist of interest as well as principal components.

As a business owner, you can utilise the savings on your EMIs to build on your existing working capital. The savings come handy as an individual in managing your daily expenses.

Option to pay only interest as EMI

The EMIs of Flexi Loans are flexible as the amount depends on the usage of funds, since the interest is charged only on the money you are utilising. However, in a term loan, the interest is charged on the full loan amount.

In Bajaj Finserv Flexi Loans, you can opt to only the interest component of your EMIs and the principal amount at the end of the tenor. This cuts down your EMIs almost by half. The example given below highlights the stated fact.

In a term loan of Rs. 1 lakh at 15% interest, your EMI is Rs. 2,489. However, in a Flexi Loan of Rs. 1 lakh at 15% interest, your EMI could be just Rs. 1,292. Since you have the option of not paying back the principal right away, it’s almost 50% less every month.

With their credit line facility, quick disbursal, and flexible EMIs, Flexi Loans offer you instant cash to address your immediate needs. Talk to our experts today, to know more.

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How to Get the Most Out of Your Flexi Loans_Revised V1

How to Get the Most Out of Your Flexi Loans

There are different stages in life when you need money to take advantage of sudden opportunities or to tackle contingencies. Whether it is a new market trend to cash on for your business, or an extended vacation for your family members, a sustained channel of funding goes a long way in addressing these issues.   

An innovative product, Flexi Loans address such situations. With these loans, you no longer have to hold back your dreams due to lack of cash. Read on to find out how you can use these loans to your maximum advantage, both professionally and personally

  • Secure a large credit line

With Flexi Loans, you secure a credit line. As a business owner, you can use it in different areas of operations. The benefit of this loan is that you need to pay interest only on the amount used. Suppose you have a credit line of Rs. 15 lakh. Out of this amount, you only use Rs. 5 lakh in a certain aspect of your business. Then you need to pay interest on Rs. 5 lakh only and not on the entire credit line of Rs. 15 lakh. 

Thus, you secure a large source of sustained funding for your business at less cost, because you are paying interest only on the funds utilised at a given point in time.  

Bajaj Finserv’s Flexi Loan offers a credit line up to Rs. 30 lakh. The limit of credit line approved is directly proportional to your credit score. Once we approve your application and disburse the funds, you can transfer the same to your account within 2 hours.

  • Utilise funds only when required

True to its name, Flexi Loan offers flexibility in borrowing and part-prepayment. With this, you enjoy the freedom to use the borrowed funds as and when required, as per your needs. You can withdraw funds from your credit line as many times as you need, too. 

  • Pre-Pay When You Have Extra Cash

Flexi Loans give you the ability to transact by withdrawing and part-prepaying as per your cash flow requirements. Like a running account with a supplier or a customer with which most of the business owners are familiar, Flexi Loan is more of a continuous financial exchange, rather than a one-time borrowing event. When you have extra cash, you can part-prepay and reset the available limit of the credit line, that you can use again later.   

  • Flexible EMIs

Flexible EMIs are one of the hallmarks of these loans. You need to pay interest only on the amount used and not on the entire credit line.

For example, if you use only Rs. 2 lakh from the loan amount of Rs. 5 lakh secured from the credit line, you need to pay interest only on Rs. 2 lakh. As a business owner, you can make significant savings on the EMIs that you can use in other areas of operation.

The same principle applies to Flexi Loans for personal use. You can use the amount saved on EMIs for managing your day-to-day expenses.

These loans also give you the option to pay only the interest component as EMIs. This brings down the EMI amount almost by half. By this arrangement, you can opt to repay the principal amount at the end of the tenor.

Flexi Loans are your best bet to overcome financial hurdles without losing your sleep over high EMIs and loan repayment. Get in touch with us to know more about our Flexi Loan offering.

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How Flexi Loans Are Revolutionising Lending In India_Revised V1

How Flexi Loans are revolutionising lending in India

Enterprising business ideas need sufficient financial backing to enter the market, and contribute to economic growth. In the modern business scenario, the financial resources of a business are required to address a wide spectrum of needs. From the requirement of a software to ensuring legislative compliance to the hiring of labour in a seasonal industry, tackling issues on short notice defines the success factor in current economic scenario.

The finance industry has a significant role in helping business ideas materialise into business houses. The lending scenario in India encompasses financial products that aid small and medium enterprises towards their fixed financial and working capital needs. We, at Bajaj Finserv, offer an innovative product called Flexi Loan, which not only helps businesses fulfil prospects like expansion or buying new equipment, but also aids in personal finance.

Say hello to Flexi Loans

Flexi Loans are new-age loans that efficiently cater to the long-term as well as short-term needs of your business. They are a customer-friendly product that also help you fulfil your personal needs and aspirations better. As the very name suggests, Flexi Loans give you flexibility in utilising your funds, something that a regular loan does not offer.

You get access to a credit line, which you can use as per your needs. It is a pre-approved limit of money, that you can make use of whenever you need, by making as many withdrawals and prepayments in your loan account.

These loans also make a great cost-saving tool, as the interest is charged on the amount you utilise in any given period, and not the whole credit limit. Also, you can choose to only pay the interest amount in your EMIs, and the principal at the end of the tenor. This brings down your EMIs by almost half, thus allowing significant monthly savings.

With a ready credit facility at hand, you can answer to your business’s ongoing operational needs in the right time, as well as finance new equipment for expansion. On the personal front, you can take care of your planned and unplanned expenses, without any worry.

The flexibility and control that Flexi Loans allow in catering to various needs makes them one of the most unique financial products in India today. These can be used for:

  1. Working capital

Whenever liquidity is tight, businesses go for quick loans which are collateral free, to address their day-to-day requirements and ensure uninterrupted operations. Daily wages, administrative expenses, rent, utility bills, and more can be taken care of smoothly with the help of a Flexi Loan. In the event of any unforeseen situation, this loan can readily help you survive a cash crunch or slowdown. With easy withdrawal of funds whenever needed, it makes a desirable working capital loan.

  1. Stocking up inventory

Flexi Loans are a great way to finance inventory needs. They help you meet seasonal requirements and peaks without affecting other regular operations of the business. At times, businesses are unable to execute big orders due to insufficient cash flow. These loans help you process any large order by helping you purchase the inventory you need, or hire more temporary workers to help manufacture the items.

  1. Equipment financing

Purchasing the right equipment, replacement of old and worn out machinery, and maintenance and upgradation of existing ones are vital to sustain a business’s efficiency. But buying new equipment can disrupt a business’s finances. When internally financed, it can take a toll on the business’s liquidity.  The credit line offered by a Flexi Loan comes to aid in such time, as it sustains the supply of funds.

  1. Legislative changes

A business needs to ensure its compliance with the commercial laws of the land. Legislative changes, like implementation of GST, often require hiring experts and training personnel, to be properly adhered to. The new laws may also require you to avail new software for your business. Since they can bring an unanticipated slowdown and affect your cash flows, a Flexi Loan can come to your aid.

  1. Medical emergencies

Given the escalating prevalence of life-threatening diseases, there is no saying as to when you might be in an emergency. The rising costs of health care make it difficult for you to attend to such situations and therefore, quick availability of funds can be lifesaving at times. A Flexi Loan being a ready credit line, helps you in such situations. It can be a regular source of funds to meet the needs of serious and terminal illnesses. 

  1. Milestones in life

As you go ahead in life, you wish to fulfil your desires and have your share of memorable moments with your loved ones. Planning a vacation to your dream destination, giving your home a modern makeover or funding higher education for your children, all require sufficient funds. Flexi Loans help you fulfil these desires, with ready availability of funds that you can use as and when you need.

Flexi Loans are a new and dynamic approach to borrowing. The control you get in transacting as per your requirement, easy and instant online availability, quick disbursal, and transparency make them a desirable financial tool in the market.

Bajaj Finserv Flexi Loans come at competitive interest rates. They help you strategically manage your cash flows and maximise savings. Go ahead and fulfil your needs without any delay, with the help of a Flexi Loan.

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Flexi Personal Loans Explained

Flexi Personal Loans Explained

In life, every interaction and every experience is a give and take. When it comes to managing your finances or availing loans, why should be it any different? This is where Flexi Personal Loans come into the picture.

A unique and innovative way of borrowing, a Flexi Personal Loan brings you the flexibility that a regular loan does not. It gives you access to a credit line from which you can withdraw and utilise the funds as per your need, and repay when you are left with some extra. This benefits you as the interest you pay is charged only on the amount utilised in a certain period, and not the whole credit line.

What does a Flexi Personal Loan entail?

A Flexi Personal Loan serves as a strategic financial instrument, helping you to better manage your finances and cash flow requirements. It is a pre-approved credit line offered to you, based on your credit score. You have the provision to withdraw money from your credit line multiple times, if you stay within your credit limit. You can also part-prepay this amount at no extra charge, and borrow it again when you need.

A Flexi Personal Loan also helps you save significantly on the interest. Unlike a regular term loan, the interest is charged on the amount you utilise in any given period. What’s more, you have the option to pay only the interest component in your EMIs and the principal amount at the end of the tenor. This can bring down your EMI amount by almost half.

On a term loan of Rs.1 lakh at 15% interest, your EMI is calculated at Rs.2489.

However, on a Flexi Personal Loan of Rs. 1 lakh at 15% interest, your EMI could be just Rs. 1292. Since you have the option of not paying back the principal immediately, it’s almost 50% less every month!

This way, you have significant monthly savings, while using your funds as and when you need.

Why should you choose a Flexi Personal Loan?

Given their very essence, Flexi Personal Loans help you in managing your cash flow more effectively and saving interest smartly. Following are their benefits to you:

  • Ready availability of liquid cash
  • Flexibility to transact, i.e. deposit and withdraw money, from your credit line as and when needed
  • Multiple withdrawals and part-prepayments, at no extra cost
  • Interest is charged only on the amount withdrawn from the credit line
  • Interest rate is usually charged daily on the amount utilised, and is payable every month, reducing your outgo in the long run
  • Convenience of transacting through your loan account through an integrated online platform
  • Minimal to zero documentation
  • Low renewal fees

We, at Bajaj Finserv, offer you Flexi Personal Loans at competitive rates, so that you take care of your expenses in the most efficient way. Be it planning a dream vacation abroad, getting your home a desired renovation, or a resplendent wedding, address your needs better with a Flexi Personal Loan.

Borrow when you need and repay when you can, and live the life you want without worrying about money!

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Flexi Business Loans Explained

Flexi Business Loans Explained

Every day, your business thrives on a series of reciprocities with other players and stakeholders in the market. In this dynamic business scenario, you have running accounts with your suppliers, distributors, and other entities up and down the value chain.

Since financing is the lifeblood of your business, it is imperative that your source of finance should also be flexible enough to keep pace with the challenges and opportunities that your business faces daily.

Whether it’s financing new machinery, training your workforce, launching a marketing campaign, making the most of a surprise business opportunity or simply the need to pay your supplier, a Flexi Business Loan is the turnkey solution for you. This new financing mode customises business funding as per your requirements, while eliminating costly EMIs.  

What are Flexi Business Loans?

Flexi business loans are new-age loans where you get a credit line which you can use as and when required. Through these loans, you can fulfil needs related to equipment purchase, capital crunch, expansion, manpower training, and much more.

At Bajaj Finserv, we have added these loans to our line of financial solutions to empower business owners and give them the financial freedom to use funds according to their requirement. Let’s understand the various aspects of these loans:

  • Access to a credit line

This is one of the most significant aspects of our Flexi Business Loan. It offers a credit line up to Rs. 30 lakh. You can use this line up to your pre-approved limit for your various business needs.

Unlike banks, where the loan approval process undergoes rigid scrutiny under various parameters, for our Flexi Business Loan, all you need to do maintain a high credit score. The higher the score, the higher your credit line.

  • Flexibility to withdraw and prepay as per your business needs

In business, the requirement of funds is not always the same. With a Flexi Business Loan, you get the ability to withdraw and prepay funds as per your business needs.

For example, if you have a credit line of Rs. 10 lakh, and you need Rs. 5 lakh, you can withdraw it from your credit line and transfer it to your bank account. Now, during the course of your business, if you realise you need only Rs. 3 lakh, you can part-prepay Rs. 2 lakh back to your credit line. If you need more funds in the future, you can always re-borrow the funds you had repaid earlier. 

  • Flexible and reduced EMIs

High EMIs put pressure on the finances of a business, as you then have less funds to use as working capital for day-to-day needs. When you take a term business loan, you pay interest on the full amount of the loan, and your EMIs consist of both principal and interest components.

However, when you take a Flexi Business Loan, you need to pay interest only on the amount utilised, and not the entire credit line. You also get the option of paying back just the interest as EMI. 

This can reduce your EMI amount almost by half. Here’s an example: the EMI paid on a term loan of Rs. 1 lakh at 15% interest for is Rs. 2,489, but the same for a Flexi Business Loan could be just Rs. 1,292.

  • Quick approval process

Flexi business loans were designed to make funds available in the shortest possible time without undergoing cumbersome paperwork. At Bajaj Finserv, once we approve your application and grant you a credit line, you can withdraw funds and transfer them to your account in under two hours.

Flexi business loans are an innovative loan option, and the ideal way to satisfy the funding requirements of a dynamic modern business. To know more, click here.

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Difference Between Flexi Personal Loans vs Term Loans

Difference Between Flexi Personal Loans vs Term Loans

When you avail a term loan to fund your child’s education, or plan a grand wedding, you are entitled to a lump-sum amount. Your EMIs constitute a part of the principal sum borrowed and the interest at a specified rate. You can part-prepay the principal amount if you do not have the need for it, but what if you require the same again in the future?

A regular term loan does not come with the provision of withdrawing any amount that you have prepaid. You will have to avail a top-up in case of further need. Hence, there is no ready availability of funds, for any additional expenditure. This very gap between your need and investment is bridged by a Flexi Personal Loan.

What is a Flexi Personal Loan?

A Flexi Personal Loan is a new and innovative way of borrowing, giving you the liberty to utilise funds as per your needs. It is a pre-approved credit line offered to you, the limit of which depends upon your credit score. What makes it unique is that you can withdraw funds whenever you’re in need, if it is within the credit limit.

Everything in life is about give and take; so is a Flexi Personal Loan. You borrow when you need, and you prepay when you can, and you borrow again, at no extra cost.

Also, unlike a regular term loan, you have the choice to pay only the interest amount as your EMI. The principal can be repaid at the end of the tenor. This way, your EMIs are almost halved and you end up saving more, every month.

Flexi Personal Loans vs Term Loans

As the very name goes, Flexi Personal Loans give you the control to use your funds as and when you need. Let us examine how they are different from regular term loans.

 

Basis

 

Flexi Personal Loan

 

Term Loan

 

1. Amount rendered

 

A pre-approved credit line

 

A fixed lump-sum

 

2. Interest charged

 

Only on the amount utilised, thus maximising savings

 

On the entire loan amount

 

3. EMI structure

 

Can opt for only interest amount as EMI, leading to substantial monthly savings

 

E.g.: For a loan of Rs.1 lakh at 15% interest rate, the EMI could be just Rs.1292, if you choose to pay only interest as EMI

 

You pay interest amount + principal component as EMI, which leads to higher EMI amount

 

E.g.: For a loan of Rs.1 lakh at 15% interest rate, the EMI would be around Rs.2489, almost twice the EMI amount of a Flexi Personal Loan

 

4. Withdrawal and prepayment

 

Flexible; you can withdraw and prepay multiple times, if within credit limit

 

Can prepay but not withdraw any amount again; must avail a top-up loan

 

5. Usage

 

Transact via your online loan account and transfer funds to your bank account within 2 hours

 

Not as flexible for use as per the needs

 

Flexi Personal Loans are an effective tool to manage your cash flow requirements, while also helping you to save on interest. We, at Bajaj Finserv, offer these loans at competitive interest rates. They come as a strategic plan to address your financial needs, planned and unplanned. So, say goodbye to heavy EMIs and fulfil your desires without any worry, with the help of a Flexi Personal Loan.

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Difference Between Flexi Business Loans and Term Loans

Difference Between Flexi Business Loans and Term Loans

From handling short-term credit crunch to hiring staff for seasonal needs, you need additional funding at different stages of your business. Funds are the lifeline of your business. Though the loan amount is crucial, the type of loan – flexi or term – is an important factor to consider.

While term loans have been the traditional method of funding, Flexi Business Loans are a new concept in the market. Both these loans differ on various aspects that you should know as they can affect operations and your repayment strategy.

Let’s find out the differences between both these types of loans and various other practical details:

  • Loan amount

While Flexi Business Loans offer a flexible credit line, term loans offer a lump-sum amount. The credit line is directly proportional to your credit score. The higher the credit score, the higher the credit line.

On the other hand, the lump sum offered for term loans doesn’t entirely depend on the credit score. Reputation in the market, cash flow, collateral offered, and business viability are some other factors influencing the loan amount and the borrowing exercise.

  • Rate of interest

One of the major differences between Flexi Business Loans and term loans is the rate of interest. In the case of a Flexi Business Loan, interest is on the amount utilised and not on the entire credit line. However, interest for term loans is on the entire principal amount irrespective of the amount utilised.

  • Structure of EMIs

In case of a Flexi Business Loan, your EMIs will depend only on the usage of funds and you pay interest only on the borrowed amount as your EMI. Additionally, you can choose to pay only interest as your EMIs. This can reduce your EMI amount by almost half. However, in case of a term loan, the EMIs consist of principal and interest component.

For a term loan of Rs. 1 lakh at 15% interest, your EMI is Rs. 2,489. However, in case of flexi loan for Rs. 1 lakh at 15% interest, the EMI could be just Rs. 1292. That’s almost 50% less each month.

Our Flexi Business Loans let you pay only interest as your EMIs and repay the principal at the end of the tenor. Thus, you make significant savings on your EMIs, which you can use to boost your business’s everyday working capital needs.

  • Fund disbursal

Access to funds in these loans is much quicker than in term loans. The amount of paperwork and scrutiny involved in term loans take up a significant time, comparatively. At Bajaj Finserv, once we approve your loan and credit line, you can withdraw funds from your credit line and transfer them to your bank account in just 2 hours.

Flexi Business Loans, as the name suggests, provide flexible options to business owners to utilise their funds as and when required. For small and medium sized businesses, a Flexi Business Loan is the best bet as it allows them to get funding more quickly for urgent financial needs. Get in touch with our experts to know more about the features and benefits of Flexi Business Loans.

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5 Important Habits To Develop In Your 20’S For A Wealthy Future

Your 20’s is the best time to capitalize on your financial independence. Managing your money smartly when you start earning will ensure a wealthy future. Here are some tips on how to be more conscious about it.

Financial freedom comes with behaving responsibly with money. When you are in your 20’s, and working at your first job, the thrill of wanting to spend what you earn is quite natural. But, this also the right age to start managing your money smartly. Prepare for a secure future by starting to save and invest carefully.

Here are some smart habits to develop to carve a path towards building your wealth.

1. Avoid the temptation to borrow money:

· Borrowing is a habit that can grow into an addiction if it is not kept in check. When you’re in your twenties, you need to stop using your family and friends as a fall-back for monetary needs.

· Say no to casual borrowing, which due to its lack of interest and late fee penalty, makes it harder for you to gain financial independence.

· True financial independence is only achieved when you stop borrowing and learn to manage your expenses based on the paycheck that you receive.

2. Use an app to track your expenses:

· Technology has made it fairly easy for you to keep a tab on finances. You can use a app like Walnut or mTrackr to draw up a monthly budget. This will help you get an overall view of your income and you can adjust your expenses depending on the figures.

· Track your spending behaviour to cut down on unnecessary expenses. Effective money management via an app will also ensure that you don’t overextend your finances.

· Having an auto payment system set for your house bills like rent and electricity is a good way to keep yourself from forgetting to make important payments. The auto-reminder option on the app will also help you save before you spend.

3. Don’t spend all the money you earn:

· The best way to ensure you are not spending everything you earn is to invest. You can choose fixed deposits or SIPs to invest slowly yet steadily and gain returns.

· Coming up with plans for your future, like buying a house in your thirties or purchasing a vehicle for yourself in 5 years is a good way to ensure that your savings become more focused.

3. Be accountable for the money you lend:

· Lending money to someone in need is an act of kindness, but valuing your hard-earned money is equally important. So be conscious of the money you are lending to friends.

· Don’t feel embarrassed to ask the borrower tell you his or her payback plan, and ensure that you can afford to lend the amount the borrower is asking for.

4. Don’t let peer pressure make you spend unnecessarily:

· In your mid twenties, you are likely to be staying away from your family. So, you are fully responsible for your money and your own life.

· While you have the right to spend your money the way you want it, avoid succumbing to peer pressure. When you are hanging out with friends, it is sometimes hard to control what you are spending. The best way to tackle this is by setting a budget for your social outings. Learn to say no to things that don’t align with your financial goals.

5. Have financial goals and put plans into place to meet them:

· Having goals help you stay on track with your finances. Have quarterly, bi-annual and yearly goals for best results.

· You can break up your goals into small and big ones. Buying your loved one’s a gift can be a small financial goal while buying yourself a car can be one of the bigger goals. These will keep you in check financially, and achieving them will also give you sense of confidence!

These 5 habits will go a long way to ensure that you are not only financially self-sufficient in your 20’s, but also at the top of the ladder throughout your life.

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