Flexi Business Loan is the type of loan provided by banks for financing owners of small businesses. This is a convenient source of finance that offers the borrower with ample amount to improve and increase the growth of the business. In this article we are exploring the important features of Flexi Business Loan that makes it more reliable and affordable for businesses. These salient features are as follows-
- Offers maximum amount qualification: Flexi Business Loan can be availed for up to an amount as high as 30 Lakh. This is to provide the borrower a sufficient range for financing the needs and purposes. The applicant receives the maximum amount for which they qualify for without any particular restriction on how they can use the fund to meet their expenses.
- Allows borrowing money at the most needy time of the business: This type of loan provides the borrower with the flexibility to borrow the money as and when they require. It is one the most important feature of Flexi Business Loan making it a much better and convenient option than Short Term Business Loans. The borrower can use the money as per their demand or requirements or even seasonal needs. It provides with the quick financing facility when the applicant at their most needy time.
- Interest is charged for the utilized amount only: One of the biggest benefits of availing a Flexi Business Loan is that the borrower is required to pay the interest rate only on the amount that they have borrowed and utilized from the whole loan amount limit. The borrower is not forced to pay the interest amount on the whole extended loan amount provided to them. This makes such type of loan more secure and affordable and provides the person with a money security for future needs as well.
- Allows the borrower to make EMIs more affordable: A Flexi Business Loan provides the borrower with the facility to pay the principal amount with the interest just like a regular loan. This means a person can repay the loan in EMIs that are affordable for the person and makes their cash flow management easier and better.
- One can repay or withdraw funds hassle-free: It provides with a freedom to the borrower to borrow the money as many times as they want but within the loan limit. Also, it provides with the facility of part prepayments whenever the business has excessive funds available. In case of lower funds in the business, it allows it to re-avail the funds as when cash is required. The flexibility of this loan makes it very popular and convenient financing option and choice for the small or medium range businesses. It helps in fulfilling the unexpected needs of the business without any hassle. On top of that the banks also let the borrower to make as many number of withdrawals or repayments as they want without any restriction or extra charge.
- No collateral is required: Flexi Business Loan can be availed by person without attaching a business asset or property as collateral or security to the lender. This makes the assets completely risk free while opting for this type of business loan in India.
- Facility to part-prepayment without any charges: One can always reduce their loan and interest burden by making prepayment to repay the loan even faster. A Flexi Business Loan allows the borrower to pre-pay the amount that is equal to the about first three EMIs of the loan with zero charges for part-prepayment.
- Easy online application: Applying for this type of business loan much more, easier than a person thinks. All one has to do is to fill an online application form and submit the required documents. The loan is usually approved within 24 hours. This saves the applicant’s time and money.
- It has simple eligibility criteria that you will find easy to qualify for
For being eligible to avail a Flexi Business Loan a person must fulfill the following criteria-
- He/ she must be between ages 25 to 55 years.
- The business vintage must be for at least a time period of three years.
- It must have a business turnover that is audited.
- Must have all the Income Tax Return records.