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Personal Loan
Flexi Loan vs Personal Loan: Which One Should You Choose?
Key Takeaways
Flexi loan like FIRSTmoney from IDFC FIRST Bank lets you draw funds up to a credit limit and pay interest only on what you use
- Traditional personal loan gives you the full loan amount at once, which means interest applies on total amount from day one
- IDFC FIRST Bank allows you to withdraw only what you require so you can reduce EMIs and interest burden as per need
There are many ways to counter a challenging financial situation. You can use your savings, but that impacts your wealth and leaves you unprepared for unexpected uncertainties in the future. Alternatively, many people redeem their investments to meet financial difficulties. Doing so, however, deviates you from meeting your investment goals.
A loan is better than both the alternatives, as it ensures your savings and investments are safe. You can pick from many types of loans, although you should choose a Flexi loan to get more control over your loan amount.
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What is a Flexi loan?
A Flexi personal loan provides a pre-approved cash limit you can use whenever you need money. Most lenders charge moderate Flexi loans interest rates and offer flexible payback arrangements. The main advantage of taking out a Flexi personal loan is that banks only charge interest on the amount you use instead of the approved loan amount. It lowers the total interest you need to pay.
With the advent of easy digital lending IDFC FIRST Bank brings to you FIRSTmoney smart personal loan with a completely end-to-end digital process, fast and simple application to approval and quick disbursement within hours. An industry-first flexible loan offer, . FIRSTmoney gives you an approved credit sum of up to Rs. 15 lakh with Multiple on demand on loans till you reach your approved limit. What’s more, you can choose your repayment tenure ranging from 9 months to 60 months and EMI amount. paying interest and EMIs on the amount(s) that you have withdrawn and not on the entire approved sum. .
Now, how is a Flexi loan like FIRSTmoney a smarter financial solution as compared to conventional personal loans?
Listed below are a few factors that put FIRSTmoney clear off standard personal loans:
- FIRSTmoney offers a sanctioned loan offer of up to Rs. 15 lakh
With a personal loan, you might have to opt for a top-up or apply for another loan if your expenses get out of hand. This would simply be a hassle since you would have to get in touch with a lender once again. With FIRSTmoney, you can get a loan offer of up to Rs. 15 lakh depending on your income and credit score, which needs to be 710 or higher. With a high loan offer, you can take care of your expenses without worrying about applying for a top-up or new loan altogether.
- There are no foreclosure charges to worry about
While this differs from lender to lender, you usually incur certain charges when you choose to foreclose your personal loan. This is not something you have to worry about when it comes to FIRSTmoney. With a FIRSTmoney loan, you can clear off the loan whenever you want with ZERO foreclosure charges.
- You only pay EMIs on the utilised amount
When you take a personal loan, you have to pay EMIs on the entire amount sanctioned irrespective of whether you use it or not. With FIRSTmoney, you can get a loan offer of up to Rs. 15 lakh, however, you only pay EMIs on the withdrawn amount and not the entire sanctioned amount.
- You can make Multiple on demand on loans whenever required
Imagine running around for a top-up loan after exhausting your current loan amount and are in urgent need of funds. This could be a problem since you would have to apply for the top-up or submit an entirely new loan application. Why go through this hassle when IDFC FIRST Bank offers FIRSTmoney – an industry-first financial solution through which you can take care of all your expenses with ease! With FIRSTmoney, you can make Multiple on demand on loans from your available loan offer starting with a minimum of ₹10,000. This feature ensures that you withdraw only the amount that you need and can continue doing so without any restrictions on the number of withdrawals.
While instant personal loans are disbursed in single payments, flexi loans can involve Multiple on demand on loans up to the approved offer.
While an instant personal loan has its advantages, a Flexi loan like FIRSTmoney proves to be much more customer-friendly. Do note that you would have to maintain a credit score of 710 or more, earn a stable income, and have your physical PAN card ready to complete the video KYC process for getting a FIRSTmoney loan. Both Salaried and Self-Employed Individuals can apply.
Conlusion
Choosing between a Flexi loan and a personal loan depends on your financial needs and preferences. Flexi loans, like the IDFC FIRST Bank’s FIRSTmoney, offer benefits such as paying interest only on the utilized amount and flexibility in withdrawals. However, it’s important to consider the disadvantages of Flexi loans, which may include higher interest rates compared to traditional personal loans and potential management fees.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.
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