A Flexi Loan is similar to an Overdraft facility provided by banks. As a borrower, you can withdraw the loan amount you require from the credit limit pre-approved by the bank. … You get the flexibility to pay the outstanding loan amount as and when you want to pay, but you need to pay the interest every month.
Considering this, can I close Bajaj Flexi loan?
If you wish to foreclose your Flexi loan account, an additional fee of 4% (plus taxes and cess) on the total withdrawable amount is applicable.
Regarding this, how does a flexi home loan work?
FlexiReserve is a facility that allows you to withdraw any extra money you’ve paid into your home loan over and above your monthly repayments. Your extra payments will reduce the size of your loan while they are in your account. Then, if you ever need cash in a hurry, you can withdraw it using your FlexiReserve.
Is Flexi loan good?
Option to pay only interest as EMIs
A flexi hybrid loan allows you to pay only the interest component of the loan as the EMI for initial tenor. … You can also pre-pay the principal, either in full or partially, whenever you have excess funds. Such a facility is not available when you avail a term loan.
The lender sets an interest rate of 10.25% and a processing fee of 2% of the loan amount.
In a Flexi loan, repayment is more flexible. You must only pay interest on the amount you have borrowed and not the sanctioned loan amount. You can also lower your interest by making part-prepayments when you have the funds. So, Flexi loans end up saving money as well.