Highlights:
- A flexi loan gives you the flexibility to borrow according to your needs within the approved amount.
- A Personal Loan delivers a fixed sum with fixed payments every month.
- Unlike regular loans, where interest starts from the first day, a flexi loan offers an interest-free grace period of up to 51 days.
Often, when you need money urgently, a loan is the first option that comes to your mind. But the question is whether to go for a Flexi Loan or a Personal Loan? Both of them support you with funds, but they have different methods of working. In this blog, we will cover everything about flexi loans and personal loans so you can easily make your financial decision without any confusion.
What is a Flexi Loan?
Flexi Loan is a flexible and reliable credit option that allows you to draw money from your approved limit whenever you want. The best part is that you pay interest on the amount you have used and not the whole approved limit.
For example, if your limit is ₹80,000 and you take out ₹50,000, you only have to pay interest on the ₹50,000. This flexibility makes it perfect for persons with fluctuating expenses.
A Flexi Loan works like a safety net. You will have funds ready right at your fingertips.
What is a Personal Loan?
A Personal Loan is a fixed loan amount that you borrow once and repay through monthly EMIs. The interest rate and repayment period are decided at the time of approval.
Once you take a Personal Loan, you must pay the EMI every month until the full amount is repaid. It is a good choice when you need a lump sum for a specific purpose.
Unlike a Flexi Loan, the amount and repayment structure in a Personal Loan remain fixed from the beginning.
Key Differences Between Flexi Loan and Personal Loan
| Feature | Flexi Loan | Personal Loan |
| Loan Amount | You can withdraw as much as you need within the approved limit | You receive the full amount at once |
| Interest Charged On | Only the amount used | Entire loan amount |
| Repayment Flexibility | You get the flexibility if you repay within 51 days; no interest will be charged. And if you need extra time, you can convert it into easy EMIs of 5, 10, and 20 months | Fixed EMIs till the loan tenure ends |
| Ideal For | People with irregular or changing expenses | People who need a fixed amount for a specific goal |
| EMI Structure | Get flexible EMIs options | Both principal and interest are included from the start |
Benefits of Flexi Loan
The main benefit of a Flexi Loan is freedom. You don’t have to borrow the full amount at once, which helps reduce interest costs. Also, you will get a 51-day interest-free grace period means if you repay within that time period, no interest will be charged. With a flexi loan, one can manage money better by using only what’s needed.
It’s useful for business owners, working students, and professionals who face variable income. You can borrow when work slows down and repay when earnings increase. The flexibility and control make it suitable for unpredictable financial situations.
Benefits of a Personal Loan
The biggest advantage of a Personal Loan is that you get a fixed amount and repay it in easy monthly installments.
It’s perfect for people who prefer a clear repayment structure and have a specific goal in mind. Whether it’s buying something important or covering an emergency, a Personal Loan gives you the exact amount you need upfront.
Which One is Better for You?
The right choice between a Flexi Loan and a Personal Loan depends on your needs. If your expenses are uncertain or come in parts, a Flexi Loan works better. You get easy access to funds and save on interest. With Viva Money’s super flexi loan, you get an interest-free grace period of up to 51 days.
But if you have a fixed expense, like paying fees or renovating your home, a Personal Loan is the right pick. It gives you the full amount at once with clear EMIs.
In short, choose a Flexi Loan for ongoing or changing needs, and a Personal Loan for one-time requirements.
Tips to Choose the Right Loan
- Understand Your Needs: Determine if your need is fixed or flexible.
- Compare Interest Rates: Look for the loan that provides a better rate.
- Check Repayment Comfort: Select the choice that matches your budget for monthly payments.
- Look for Trusted Platforms: It is always good to borrow from a loan app or financial institution that is trustworthy for safety and transparency.
Final Thoughts
Both Flexi Loan and Personal Loan provide financial support when needed. However, they have different methods of delivery. The choice of a Flexi Loan gives one the advantages of savings and flexibility, whilst the Personal Loan provides simplicity and structure.
When weighing the two options, Flexi Loan vs Personal Loan, consider the amount and the time when you will need it. The loan that best suits your lifestyle, spending habits, and comfort zone is the one that you will benefit from the most. A well-thought-out choice guarantees not only that you will not experience any financial difficulties but also that you will easily realize your goals.
FAQs
1. What is the main difference between a Flexi Loan and a Personal Loan?
A Flexi Loan lets you withdraw money as per your needs from an approved limit and charges interest only on what you use. A Personal Loan gives you the full amount at once, and you repay it in fixed EMIs every month.
2. Which loan is better for someone with irregular income?
A Flexi Loan is better for people with variable income because it allows flexible withdrawals according to need.
3. Do both loans require the same documents?
Flexi loans require basic documents like PAN and Aadhaar. A personal loan may require bank statements, income proof, and other documents.
4. Which option helps save more on interest?
A Flexi Loan can help save more on interest because you pay interest only on the amount you use. Also, Viva Money’s super Flexi Loans offer an interest-free grace period of up to 51 days.
5. Can I prepay both Flexi Loans and Personal Loans?
Yes, both can be prepaid, but the rules differ. Flexi Loans usually allow easier prepayment without much penalty, while Personal Loans may include prepayment charges depending on the lender.
