Hybrid Flexi Loan Vs Personal Loan

Overview

Availing of a loan proves to be beneficial in several ways, especially for individuals with a steady income and a good credit score. However, when planning to borrow a loan, one must choose wisely to ensure that it meets all their desired financial requirements. Among the different types of loans available in the market, personal loans and hybrid flexi loans are popular options. While both the options help you fulfil a range of financial needs, a few factors set them apart. These include the nature of the loan, interest rate, disbursal process, tenor, and the repayment mode.

Hybrid Flexi Loan vs Personal Loan: Know the Difference

Nature of the Loan

Personal Loan: In the case of a personal loan, the lender generally extends the loan amount for a specific period with a pre-determined repayment schedule, usually linked to a fixed interest rate. Once the loan amount is approved and disbursed, the individual can use the funds however they like as there are no limitations over how you spend the loan amount.

Hybrid Flexi Loan: In the case of a hybrid flexi loan, the lender offers a credit line, approved after the borrower meets all the eligibility criteria. The borrower enjoys the freedom of requesting funds as and when they require it.

Interest Rate

Personal Loan: These types of loans are mostly subject to a specific interest rate charged on the principal amount irrespective of whether it is used or not.

Hybrid Flexi Loan: A hybrid flexi loan, on the other hand, requires the borrower to pay interest only on the amount used. These types of loans offer a lot more affordability and flexibility, as these discount the interest on the unutilized fund.

Loan Repayment and Tenor

Personal Loan: Personal loan tenors tend to be shorter, given that the loan is unsecured and is issued with some risk factors attached. Most lenders allow up to 60 months, for borrowers to repay the loan amount.

Hybrid Flexi Loans: Hybrid Flexi Loans enjoy a longer repayment tenor that allows the borrower more time to plan the loan repayment procedure and make necessary financial arrangements. A flexible repayment tenor is key in maintaining financial stability.

Read More: Different Types of Loans Available in India

Loan Disbursal

Personal Loan: The disbursal process for a personal loan is simple and straightforward. After the completion and approval of the application process, the lender disburses the approved loan amount to the borrower’s bank account.

Hybrid Flexi Loan: In the case of a hybrid flexi loan, borrowers can request sums from their loan amount as per their need, leaving the rest untouched for later. This is a more flexible credit option, as it allows you choose how much to avail of, depending on your requirements.

Personal loans and hybrid flexi loans, both offer quick and easy funding. One can choose between the two, taking into account their financial needs and their budget feasibility.