It is very important to have capital to run the business. When the trader runs out of capital, he takes a flexi loan. Lack of capital is due to many reasons in the business such as not being able to buy inventory due to not getting the money from the client in time. In such a situation the businessman can apply for a business loan.
Flexi business loan is a new-age business loan, where the applicant is given a credit limit, which he can use at the time of need. Through this type of loan, the merchant can fulfil his business needs, business expansion, machine purchase and others during the shortage of capital.
The trader can take as much funds as he wants from the credit limit, whenever he needs. Interest will also be charged only on the amount that is taken, not on the full limit. Apart from this, there is also the facility of partial payment in view of the convenience of the businessman. There will also be no penalty on this.
Benefits of flexi loan
– He needs to apply for the loan only once, not repeatedly.
– He gets an option to pay interest as EMI.
– There is no additional charge on the partial payment of the amount taken.
– Businessman can withdraw funds as many times as needed.
– Money can also be withdrawn online.
How to understand flexi loan
Loan Amount: Flexi business loans come with a Flexi credit line. This credit line is proportional to the credit score. This means the higher the credit score, the higher the limit. Whenever the businessman needs, he can withdraw from the fund account. As much as he wants, as many times.
Interest Rate: No interest is charged on the entire credit limit. The lender charges interest only on the amount that the trader has withdrawn. So, the businessman has easy access to funds, but he only has to pay interest on the same amount as the amount he has used.
Repayment: You get a flexible repayment period for the payment of a flexi loan. The customer can repay the loan under flexible repayment period. The duration option is usually 12 months, 18 months and 24 months. He can choose an option according to his repayment capacity.
Loan repayment: Generally it takes less than a week to take a loan from NBFC. But when it comes to banks, it takes more than a week. Apart from this, a lot of paperwork is also included. If you have applied for a business loan from NBFC, then they also provide the facility of online application. Businessmen can also apply for loans through online. Submit a soft copy of the documents online and after processing the application, the loan amount will come to your account within a week.