Difference Between Flexi Hybrid Loans and Personal Loans

Hybrid Flexi Loan Vs Personal Loan -Banner_WC

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Hybrid Flexi Loan Vs Personal Loan_WC

3 min 24 Jan 2024

Highlights

Overview of Hybrid Flexi Loans and Personal Loans
Key Differences Between Hybrid Flexi Loans and Personal Loans
Required Documents to Apply for a Personal and Hybrid Flexi 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. Personal loans and hybrid flexi loans are among the different types of loans offered by lending institutions. While both 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 repayment mode.

Read Also: Document Checklist for a Home Loan

Difference between a Flexi Hybrid Loan and Personal Loan

1. Nature of the 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 for medical emergencies, a child's education, or home renovation.

In the case of a flexi hybrid 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.

2. Interest Rate

Personal loans are mostly subject to a specific interest rate charged on the principal amount irrespective of whether it is used or not. You can calculate your EMIs for personal loans, Home Loans, or Loans Against Property by using an online EMI calculator.

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 feasibility and flexibility, as these discount the interest on the unutilised fund.

3. Loan Disbursal

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.

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

Also Read: Tips to Manage Loan Against Property Repayments Efficiently

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.

Documentation Required for Personal Loan and Hybrid Flexi Loan

For those interested in a personal loan or a hybrid flexi-loan, these are the documents they should keep handy. Note that this is an indicative list, and more documentation specifics will be shared with borrowers at the time of application.

Mandatory documents such as PAN Card/ Form 60
Proof of Address
Bank statements of the last 6 months
Salary slips of the last 3 months
Form 16 or ITR history

Conclusion

Both loans serve the end purpose of offering funds for your personal needs. You can either go for a personal loan or a hybrid flexi loan - both have their own advantages and shortcomings, depending on what your priorities are.

*Terms and conditions apply.

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