Frequently asked questions
There are two types of Flexi Loans offered by Bajaj Finance Limited:
- Flexi Hybrid Loan: It is a monetary loan where during the initial tenures, your EMI includes only the interest payment of the utilised loan amount. However, during subsequent tenures, you pay both interest and principal based on the loan amount you utilise. This helps you reduce your cash outflow for the first few years.
- Flexi Term Loan: It is a monetary loan that is repaid in regular payments over a set period of time. Here, your EMI includes both, principal, and interest payments. The interest component will be charged on the utilised amount.
There are many features of Flexi Term Loan that make it a unique proposition:
- With this product, you can prepay and drawdown/ withdraw money as many times as you want, making the process easy and hassle-free.
- Interest is charged only on the amount drawn by you and not the entire loan amount.
- On availing of this facility, you benefit by saving interest costs as you can prepay the loan at no extra cost.
- You enjoy seamless, easy, hassle-free online transactions that allow you to make pre-payments towards your loan through a net banking facility.
- One of the major differences between Flexi Loans and Term Loans is the rate of interest. In the case of a Flexi Loan, interest is calculated on the amount withdrawn and not on the entire loan limit. However, interest for Term Loans is calculated on the entire principal amount.
- There are no additional charges for part-payment in Flexi Loan but the same is applicable for Term Loan.
- You can withdraw the amount if an additional part-payment is paid by you in a ‘Flexi Loan’. However, if you have a Term Loan you can’t withdraw after making any part-payment.
You get the flexibility to make transactions (prepay and drawdown/ withdraw) through your loan account as per your cash flow requirements. Also, you can maximise savings by paying interest only on the utilised amount.
Part-prepayment is a kind of loan repayment method in which you pay a part of your loan amount when you have surplus funds. You can make part-payments as many times as you want. However, banks and financial institutions are likely to charge an additional fee when you make a part-prepayment. In case you’ve opted for our Flexi Loan variants, you can part-prepay your loan at no additional cost.
Please note that you have to maintain a minimum balance of Rs. 100 as your outstanding principal amount to keep your Flexi Loan account active.
Interest is calculated on your daily highest utilised amount. For example, if your monthly instalment due date is the 2nd of the month, then your interest gets calculated from the 27th of the previous month to the 26th of the next month.
The annual maintenance charge (AMC) is a nominal fee that we levy every year to keep your loan account active and provide you with these services.
- Part-pay your loan and drawdown/ withdraw funds as per your needs.
- Access your loan account details anywhere and anytime.
Note: AMC is charged as per your loan variant. For more details, please ‘refer to your loan agreement’.
With effect from April ’23, the AMC will be adjusted from your utilised Flexi Loan limit.
However, for the convenience of the customers, the Flexi Loan limit will be increased as much as the AMC to allow them to withdraw the maximum amount as per their sanction.
You can foreclose your loan anytime after clearing/ paying your first EMI.
Please note: Foreclosure charges will be applied as per your loan agreement.
