Want us to help you with anything?
Request a Call back

This field is required Only alphabetes are allowed
This field is required Only alphabetes are allowed
Please enter valid number
Please enter valid email
Please select product type
Please enter valid pincode

Thank you for your request.

Your reference number is CRM

Our executive will contact you shortly


2 mins Read | 3 Years Ago

What is a Flexi-Personal Loan, and how does it work

What is a Flexi-Personal Loan, and how does it work?

Flexi-Personal Loans have a pre-approved cash limit, enabling you to avail of immediate financial help for unplanned expenses. Read further to know what is a Flexi-Personal Loan and how it works?

Financial emergencies can arise anytime. Not all are equipped with liquid cash to deal with such circumstances. Just like others, you may be compelled to take credit to deal with the unplanned expenses. To ensure that borrowers sail through the tough situation smoothly, banks offer the Flexi-Personal Loan.

A Flexi-Personal Loan is a variant of a Personal Loan that makes available funds instantly. This is a new loan wherein banks define a pre-approved cash limit. After availing of the loan, it is up to you on how you want to spend the loan amount. Financial institutions like ICICI Bank offers Flexi-Cash facility, which is only designed for ICICI Bank salary customers.

Features of Flexi-Personal Loan:

  • 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 can make a prepayment as per your convenience
  • The interest rate on the Flexi-Personal Loan depends on the loan amount you use and for the term period you use the loan.
  • 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.

How does the Flexi-Personal Loan work?

It works just like the Overdraft facility where the lender pre-approves a loan amount, and you can withdraw the needed funds within the allotted credit limit. You can use the loan for any purpose, and the interest is charged only on the amount you wish to use. The remaining loan amount does not accrue any interest. Any salaried or self-employed individual can apply for the Flexi-Personal Loan. The eligibility criteria may vary from one lender to another.

If you’re looking to avail of instant funds, a Flexi-Personal Loan would be the right choice.

The following are the benefits of the loan type:

  • If ever you’re in a financial crisis, this loan type would be an ideal choice as you get access to funds quickly. You can withdraw the amount whenever the need arises
  • You can prepay the loan amount when you have excess funds. This helps you reduce the burden of the principal amount
  • Since the bank pre-approves the credit limit, you are entitled to withdraw anytime depending on your emergency.
  • A Flexi-Personal Loan requires zero documentation, as it is a pre-approved credit facility.
  • The interest is levied on the amount you withdraw. For instance, if you have applied for Rs <10> lakh loan and you withdraw only Rs <5> lakh, the interest rate is applicable only on the withdrawn amount. This means your loan repayment will be easy.

You can easily apply for a Flexi-Personal Loan at any financial institution as it offers flexibility to the borrowers to use the loan amount based on their needs. If you want an emergency financial help, ICICI Bank has a Flexi-Cash provision for the existing Salary Account customers, if they miss EMIs or face cheque bounces due to insufficient funds.



For disclaimer, Click Here.

People who read this also read

View All


View All
2 mins Read | 6 Months Ago
Understanding Personal Loan Foreclosure: Important Facts
Personal Loan

Scroll to top