Flexi Personal Loan

A Flexi loan or a Flexi Personal loan is a pre-approved overdraft facility from the bank with a relaxed repayment tenure and an affordable interest rate. In this article, we will discuss in detail the flexi loan meaning, its application process, and how it varies from a term loan. 

What Is Flexi Loan?

A Flexi Loan, also known as Flexi Personal Loan, is available to individuals with a good credit history and stable employment. These loans can be taken for a particular amount in the form of an overdraft or credit line facility. 

Flexi loans are unsecured personal loans. Under this type of personal loan, the lender charges interest only on the amount used by the borrower, not on the total sanctioned amount. 

Borrowers can repay the principal amount to the lender at their convenience, but they have to clear the interest amount at regular intervals according to the lender’s terms and conditions.

How Does A Flexi Loan Work?

The Flexi-Personal Loan works like the Overdraft facility, in that it pre-approves a loan amount and lets you withdraw the needed funds within the allotted credit limit. The interest charged is determined by how much you borrow, but if you don't use all of your loan amount, it doesn't accrue any interest.

Any salaried or self-employed individual can apply for this type of loan from banks and financial institutions. The eligibility criteria vary from one lender to another.

What Are The Benefits of A Flexi Loan?

Here are some benefits flexi loans offer.

Instant Funds 

Since eligible candidates have a pre-approved limit from the bank, you can withdraw money whenever necessary 

Flexible Interest

The borrowers only have to pay interest on the money they have utilized and not on the total amount, making it an affordable loan option.

Multiple Withdrawals

It's not like a typical loan where you get the entire loan amount at once. In flexible loans, the borrower may withdraw more money after paying back the initial loan amount.

Easy Prepayment Option

You are free to prepay the loan amount with these loans whenever you have extra cash on hand. The standard repayment is also simple because you only borrow what you need and can pay it back right away. 

No Documentation

A Flexi loan is a pre-approved facility from the lender available to candidates who they deem trustworthy. Hence, you can simply use the facility when in need and not worry about submitting documentation, all over again.  

What Is Flexi Loan Interest Rate?

Flexi loan interest rates vary from one lender to another. Additionally, the interest rate charged applies to only the amount used. 

Here are the top Flexi loan lenders in the market and the interest rates they offer.


Interest Rate(p.a.)



ICICI Bank 12% and 14%
Bajaj Finserv 11% onwards
Kotak Bank 12.75% onwards

What Is The Difference Between Flexi Loan And Term Loan?

Flexi loans and term loans are used to fulfill various financial requirements. While they serve the same purpose, they vary in the parameters involved.

Let us understand the difference between them. 

Flexi Loan

Term Loan

Flexi loan is an overdraft facility available to eligible candidates. While a Flexi loan comes with a predetermined limit, borrowers can only use what they require.

Term loan comes with a fixed limit, tenure, and an interest rate based on the amount borrowed. 

Flexi loans allow borrowers to pay interest on the amount they have utilized. The interest rate is fixed and applies to the principal amount. 
In this type of loan, borrowers can use only the amount they require and can borrow from the limit as many times as needed. Borrowers have to avail the whole loan amount at once.
Flexi loans come with considerably lower EMIs making them affordable. EMI is on the higher side when it comes to term loans.
Flexi loans are instant, and there is minimum documentation involved. To avail a term loan, borrowers must apply for it, submit the necessary paperwork, and wait for the bank’s approval.
Flexi loans have low or no prepayment charges. Borrowers must pay prepayment charges if they choose to end the loan term earlier.

How To Apply For Flexi Personal Loan?

Now that we have understood Flexi loan meaning, we will look at the application process for Flexi personal loan. 

Borrowers looking for instant flexi loans can apply from the website of their bank. Depending on the bank, the application process also varies. Submit your name, the mobile number registered with the bank, and other necessary information. 

If you are deemed eligible for the Flexi loan by the bank, you will receive the amount instantly in your bank account. 

What Is The Eligibility Criteria for Flexi Loans?

Eligibility requirements vary depending on the lender. The most common eligibility criteria are mentioned below. 


Flexi personal loans are instant, flexible, and affordable. They make it easy to overcome financial difficulties without a lengthy process or hours of anticipation. Simply share a few details with your bank and instantly avail a pre-approved loan limit designed just for you.

Flexi Personal Loan Related FAQs

The minimum salary depends on the lender. When you fulfill their minimum salary criteria, you will be eligible for a flexi loan.

The interest rate for Flexi loans changes based on the lender. It is, however, lower than the interest rate offered by term loans.

Some lenders allow you to switch from a term loan to a flexi loan without additional documentation. 

Both, term loans and flexi loans, aim to fulfill our financial necessities. Depending on your requirements and the features of the loan, you can choose either a term loan or a Flexi loan.

A Flexi loan with a credit score of 670 may or may not be possible. However, moneyview offers instant personal loans for applicants with a low credit score of 650. Apply on the website or app to get up to Rs. 5 lakhs in just 24 hours. 

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