When deciding to avail a business loan, it is quite confusing for the MSMEs to decide which type of business loan to avail. Whether a flexi business loan or a term business loan. The plenty of available options often confuses them. And when in confusion, the right way to decide is by weighing the advantages of the options available.
And when we talk about advantages, flexi business loans have a number of benefits over other types of business loan. However, before we go any further, let us first comprehend what a flexi business loan is.
Flexi Business Loan
A flexi business loan is a new age business loan. This type of business loan is more like a credit card. The borrower gets a credit limit sanctioned by the lender and he can use the funds up to it. He would only be charged interest on what he uses. However, the only difference is while you can spend the credit card for any purpose as per your discretion, you have to spend the funds so availed under flexi loan for business purpose only.
Now let’s take a look at how flexi loans for MSMEs in India can be beneficial.
This is the best part of the flexi business loan in India. They are offered without collateral and the borrower is not required to put up any collateral to back the business loan amount. This makes the business loan application process easy. Also, those MSMEs can also avail a flexi loan who do not have enough collateral to hypothecate.
Flexi loans in India are offered without collateral which leads to a hassle-free business loan approval process. With no collateral, fewer documents are required to avail a business loan. Basically, the required documents to initiate loan process are less ensuring the borrower’s access to loan amount easier and faster.
Short Disbursal Time
After the approval of the flexi business loan, the borrower is not required to wait for long to get the funds credited to his bank account. The funds would be disbursed within a few days. So, MSMEs get to enjoy the benefits of instant cash support.
Flexi EMI options
Usually, the borrower’s get the flexible repayment tenure to repay the flexi business loan. They can choose the flexi repayment tenure ranging from 12-24 months and repay the business loan in easy monthly instalments.
No Prepayment Charges
The flexible business loans can also be repaid before their tenure. Many NBFCs do not levy any penalty on the complete or partial pre-payment of the flexi loan.
So, all these benefits make the flexi business loans the best small business loans option for MSMEs. One can certainly say that the flexible business loans are the way to grow for MSMEs. ZipLoan offers flexi business loans without collateral on easy terms and conditions and at the best interest rates.