Flexible Personal Loans: A Reliable Solution for Emergency Situations


A flexi loan is a type of personal loan that comes with a pre-approved credit limit that is set by the lender from which you can withdraw funds as and when required. Depending on your profile, the lender will offer you a pre-approved cash limit in the form of an overdraft facility or credit line. These loans can be used like an emergency loan and can fund financial emergencies. The disbursal of flexi loans are usually fast, with deposits happening on the same day of loan approval.

How does Flexi Loan work?

Flexi loans operate similarly to an overdraft facility, wherein a predetermined loan amount is pre-approved by the financial institution. You have the flexibility to withdraw funds from this approved limit as and when needed. You can use flexi cash loans for any purpose and the interest will be charged only for the amount used. The remaining loan amount will not accrue any interest.

Features And Benefits of Flexi Personal Loan

Flexi loans has the following features and benefits:

  • Higher credit limit: You can get a higher credit limit than most types of loans. You can withdraw funds as per your needs till you hit your credit limit.
  • Flexible repayment schedule: Flexi loan borrowers can pay the outstanding principal amount as per their own convenience when they have surplus funds.
  • Easy access to funds: Emergency loans will help you during a financial crisis that requires immediate funding. After the loan limit is approved, you can withdraw funds whenever you want in as many tranches as you want.
  • Lower interest component: The interest rate in this type of loan is charged only on the amount withdrawn by the borrower and not on the entire credit limit. For example: If the credit limit is ₹5 Lakhs but the borrower has only withdrawn ₹3 Lakhs, then he/she will have to pay interest only on what was withdrawn, which brings the overall cost of borrowing down.
  • No collateral needed: You do not have to pledge security or collateral while getting a flexi loan. The last thing that you would want to do in an emergency situation is stress about collateral. Flexi loans alleviate your stress in such a scenario.
  • Multiple withdrawals: You can take out funds as many times as you want till the credit limit is exhausted without having to pay any additional charges.
  • Easy application process: Most flexi loan providers have an end-to-end online application process. Therefore, you do not have to physically visit the lender’s office or stand in long queues to get a loan. You can easily accomplish it from the comfort of your home.

The Eligibility Criteria for applying for a Flexi Loan are as follows:

The basic eligibility criteria for flexi cash loans are as follows:

  • The potential applicant may be either a salaried individual or a self-employed professional.
  • The applicant should be between 21 and 70 years of age.
  • To be eligible, the applicant should ideally have a credit score of 750 or above.

Keep in mind that lenders consider various factors while assessing the eligibility of the applicant for flexi loan like income, occupation, business continuity, existing debts, etc., while sanctioning the credit limit and approving the loan application.

Documents Required for Flexi Loan

The documents that need to be submitted for getting flexi loans are quite similar to term loans in most cases. Below are the essential documents needed::

  • Identity proof: Voter ID Card, PAN Card, Passport, Driving Licence, Aadhar Card
  • Address proof: Driving license, Passport, Property Lease, Utility Bill, Aadhar Card, Bank Account Statement, Property Purchase Agreement
  • Income Proof: Salary Slip, Form 16, ITR, P/L Statement
  • Passport size photographs

Kindly note that the documents mentioned above might vary lender to lender and the lender might ask for additional documents depending on the applicant’s profile.

How to Apply for Flexi Loans?

You can apply for a flexi loan by following the simple steps mentioned below:

  • Visit the official website of the lender from whom you want to get the loan.
  • Select the “Flexi Personal Loan” option. You will find this on the loan section of the lender’s website.
  • Click “Apply now” and fill the details in the application form
  • Upload scanned copy of all the necessary documents.

You can also visit the closest branch office of the lender. Additionally, you can use third-party aggregator websites to compare various flexi loans and apply for the same.

If you are looking for an instant loan that you can get in a hassle-free manner and with minimal documentation, then flexi loans can come in handy as an emergency loan. Before you choose a lender, make sure you evaluate how much you need, interest rates, repayment tenure, etc. Pick a repayment tenure and EMI that matches your income flow.