Flexi business loans are designed to help small business owners meet their short-term financial needs. A flexi loan can be availed to purchase equipment or lease it, meet the working capital requirement, lease premise, marketing, renovation, and technological upgrades. There are many flexi business loans providers in India that offer the loan facility to business owners across the country.
What are Flexi Business Loans?
Flexi business loans are a type of loan facility where the loan lender approves a loan limit for the business owner. The loan limit is sanctioned for a specified time period, mostly for a year. And once the limit is sanctioned, the business owner can withdraw funds within the limits at any time. He would be charged interest only on the amount that he has withdrawn.
This type of loan helps him to be prepared with the loan in advance. He is not required to apply for a business loan at the time of requirement. He can simply withdraw the amount as and when required. Notably, the amount should only be used for business and its related activities.
Are Flexi Business Loans Collateral-free?
Yes, there are many flexi loans providers in India that offer the loan facility without collateral. There is no need to provide security to avail a loan for the business.
What is the minimum Business vintage required?
Most loan lenders in India require a minimum business vintage of 2 years.
How long does it take to get the approval of Flexi Loan?
Flexi loans are mostly offered by NBFCs and online lenders. It takes them not more than a few days to approve the loan application.
How long does it take Loan Disbursement?
For the disbursement of flexi loans in India, the loan lenders disburse the loan amount within 3 days after the loan application approval.
How do Flexi Loans work?
Flexi loans are a credit facility where the business owner gets a loan limit approved for a tenor. The businessman is not required to borrow the whole amount. He can borrow as per the business requirements. He can withdraw funds as and many times he requires. He would be charged interest only on the borrowed amount.
How many times can the amount be withdrawn?
The funds can be withdrawn n number of times until the entire limit is utilized. For instance, the loan limit is INR 5 lakhs. If the business owner has withdrawn INR 2 lakhs. He still has INR 3 lakhs at his disposal which he can withdraw in parts or in one go.
Can the Loan premiums be known before applying for it?
Business loan EMI calculators are available on the lender’s website. From there, the business owner can get the idea of the EMIs that he will have to pay towards the loan account.
Do business loans in India come with a Flexi Loan Facility?
Business loans do come up with the flexi loan facility. Suppose the loan lender has approved a loan limit of INR 5 lakhs, the business owner is not required to borrow the entire amount. He can withdraw the amount which he requires, say INR 3 lakhs only, and the interest would be charged on the same.
Can I prepay Flexi Loan?
Yes, flexi loans can be pre-paid. Also, NBFCs and online lenders offer prepayment of the loans without any penalty or charges.
Can I apply Flexi Loan Online?
Yes, the flexi loans can be applied online through the lender’s website. The business owner will have to fill the loan application and also upload the required documents.