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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