Personal Loan vs. Flexi Hybrid Loan: Which one suits you more?

When borrowing funds, ensure you opt for the most favourable offer because that way you can make your repayments easy. Given how technology has evolved in the financial services industry, lenders now have a suite of customised offerings that you can choose from. For instance, Bajaj Finserv offers a regular Personal Loan and a Flexi Hybrid Personal Loan.

While both options offer you funding easily and quickly, there are few differences that set them apart. Based on your needs, financial capabilities and other such factors, one may suit you better than the other. With a better understanding of these personal loan variants, you can make an informed decision that helps you manage your finances better.

Here is a comparison of a personal loan and a Flexi Hybrid Personal Loan based on their key characteristics.

  1. Sanction

In the case of a regular personal loan, the sanction is the funding that you’re approved for and is available for use as a lump sum upon disbursal. There are no spending restrictions whatsoever. Alternatively, with the Flexi Hybrid Personal Loan, you are approved for a loan limit. From this limit, you can withdraw funds as and when the need arises, as many times as needed. Here too, there is no restriction on where or how you spend the amount.

So, when determining which suits you best, simply consider your needs. If you’re looking to fund an expense through periodic payments, such as medical bills for a prolonged treatment or monthly fees, then the Flexi Hybrid Personal Loan is the better-suited option. This is becauseyou don’t borrow more than you need and can thus control your monthly outgo.

  1. Tenor and repayment

For a regular personal loan, the tenor is a set repayment period during which you must repay your dues in EMIs. In the case of a Bajaj Finserv Personal Loan, you can opt for a flexible tenor of up to 60 months. The entire loan amount and interest is then divided across the entire tenor and you pay in EMIs of the same amount. Besides, the interest is charged on the entire sanction, irrespective of your utilization.

With the Flexi Hybrid Personal Loan, repayment is a lot more flexible. Here you pay interest on the amount you have utilized from your limit and not on the total loan amount. You can also make part-prepayments as and when you have the funds to do so and reduce your total interest due. So, if you’re looking to minimise your interest outgo, then the Flexi Hybrid Personal Loan is the right option for you.

  1. Disbursal

Disbursal with a regular personal loan is a straightforward process. Once you’re approved for a sanction, the lender then authorises disbursal to your registered bank account. However, with the Flexi Hybrid Personal Loan, only the amount you wish to utilise is disbursed into your bank account. This gives you full control of your loan and the outgo you’re liable to pay.

  1. Additional features

The Flexi Hybrid Personal Loan also allows you to pay interest-only EMIs. With this feature, you can reduce your monthly outgo by up to50*% and free-up your budget for other obligations. This isn’t an option with a regular personal loan as the EMIs constitute of both, principal and interest payments together.

  1. Application procedure

Whether you apply for a Personal Loan or a Flexi Hybrid Personal Loan from Bajaj Finserv, you can enjoy a stress-free online process. With simple eligibility criteria, straight-forward application process, and instant approval, you can get the funds you need in no time at all! Bajaj Finserv also has pre-approved offers, which have quick verification to further simplify the process of availing the loan in both cases.

From these differences, it is clear that the Bajaj Finserv Flexi Hybrid Personal Loan prioritises your convenience all throughout the borrowing process. It also a better option when you are looking for a more affordable repayment during financial uncertainty. To borrow on cost-effectiveterms, be sure to check your pre-approved offeron a Flexi Hybrid Personal Loan right away!

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