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.




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.

Apply for Personal Loan Check your Loan Eligibility Calculate Your EMI