From what I know, loans come in both flexible and term types. As the title indicates, a flexible approach is used to provide loans under the name "Flexi Loan." The application process for a term loan is not very complex, but both loan applications have separate processes. So let’s take a look at the difference between flexi loan and term loan.
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The term "overdraft" also applies to flex loans. A financial option called the Flexi loan is provided considering the history of your bank account. According to a bank account record, you have a bank account with Rs 10 lakh Flexi loan approved. Each month, you make a payment from your account as per your requirement. Then you have to pay interest on the amount you use monthly.
What is a term loan?
The name seems to have a definition. In this definition, a term loan is a sum of money borrowed for a specific duration of time. It refers to the sum that is agreed to be repaid within a given period of time.
Which loan, a term loan or a flexible loan, is preferable?
Important details about both term loans and Flexi loans are provided in this article. On basis of their individual terms, both loans are preferable. For people who work with cash on a daily basis, flex loans are a preferable choice. A secured term loan is a preferable choice for people who must buy a home or an automobile.
What is flexi loan vs term loan?
Term Loan |
Flexi Loan |
Your account receives the full amount of the accepted loan from the lender. |
You are granted a credit limit by the lender, which you are free to withdraw from as needed. |
All of the loan's principal will be subject to interest charges. |
If the withdrawal is within the lender-approved credit limit, you will only be required to pay interest on the amount you remove. |
You must pay prepayment fees if you prepay your loan in full or in part. |
Prepayments can be made at no or very little cost. |
You are now aware of the difference between flexi loan and term loan.
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Authors Of The Question
Difference between flexi loan and term loan
lubna
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2022-11-11T18:41:43+00:00 2022-11-11T18:41:45+00:00Comment
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