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.