Highlights
- Overview
- Hybrid Flexi Loan vs Personal Loan: Know the Difference
- Application Process
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
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 however they like as there are no limitations over how you spend the loan amount.
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.
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.
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.
3. Loan Repayment and Tenor
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 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.
Read More: Different Types of Loans Available in India
4. 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.
Borrowers can request sums from their loan amount as per their need, leaving the rest untouched for later when it comes to hybrid flexi loan. 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.
5. 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 however they like as there are no limitations over how you spend the loan amount.
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.
6. Interest Rate
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.
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.
7. Loan Repayment and Tenor
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 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: Personal loan vs Loan against property
8. 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 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.
Conclusion
Both the 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 but that really depends on what your priorities at the moment are.
