Money plays a significant role in our fast-paced society. To meet our many needs, we needed money. Sometimes, these needs necessitate more money than we have in savings or may significantly reduce them. At the time, taking out a loan was the only sensible option for someone with a consistent income and a solid credit score. Currently, you can get a loan through a public or private bank, an NBFC, or a private loan agency in Ahmedabad.
However, if you are considering taking out a loan, make sure it satisfies all of your intended financial needs. These days, the market offers a variety of lending solutions to suit your requirements. Among these multiple loan alternatives, personal loans and hybrid Flexi loans are the most popular.
Even though, both choices appear to be comparable and address various monetary objectives. They are still distinguished from one another by a few things. And through this blog, we will learn about these aspects that make personal loans and flex loans different.
The major difference between the Flexi loan & Personal loan
|Nature of the loan||Here, the lender extends a regular personal loan for a specific period. Besides, this type of loan has a pre-determined repayment schedule. However, the loan schedule is subjected to a fixed rate of interest.||With a Flexi loan, the lender approved a certain loan limit. A borrower can withdraw the amount whenever & as many times as he wants. In this type of loan, the borrower gets the option to repay the loan at his convenience. It means he can repay the loan amount when he has extra cash.|
|Loan amount||In this option, the lender disburses the whole amount of the approved loan into your account.||In the Flexi loan, the lender sanctioned a certain amount of credit limit. This sectioned amount gets credited to your loan account. You can withdraw the money from that account as per your need.|
|Interest payment||When you take a Personal loan, you have to pay interest on the entire loan amount.||In a Flexi loan, you’ll have to pay interest only on your withdrawal amount from the total sectioned credit limit.|
|Prepayment||In a personal loan, when you make full or partial pre-payments against your loan, you will have to pay pre-payment charges.||In this loan option, you can make pre-payment against your loan amount at zero or minimal pre-payment charges.|
|EMI structure||When you take a Personal loan, you have to pay a fixed EMI amount. It consists of both principal & interest. Here, you can calculate your estimated EMI in advance with the help of any online personal loan EMI calculator.||When you take a Flexi loan, your EMI amount depends on your loan term, tenure, prepayment, & amount you withdraw.|
|Accessibility||You can easily access a personal loan by following its standard procedure of submitting documents & their verification.||A Flexi loan is more accessible than a personal loan. You can easily obtain it by following a small online/offline procedure.|
Both the Personal & Flexi loan offers quick & easy funding facilities. However, you can choose any one of them as per your need & capacity. So, before you apply for any loan take out some time & do some research. It will help you in taking the right decision regarding obtaining a loan. If you are interested in taking a loan then consider obtaining it from AGIL Finance. We are one of the reputed loan agencies that provide the Best Loan Services in Ahmedabad. Contact us at firstname.lastname@example.org to avail of our services or to know more about us.