Flexi Loan Account is an Industry first facility extended by Bajaj Finserv. The advantage of the product is that you can pre-pay and drawdown money within the drop-line facility using a self-service process, which is easy and hassle-free. Once you avail the Flexi facility, you stand to benefit by saving interest cost by pre-paying any additional / idle funds that you may have, without any interest being levied on the part-paid amount.

It is akin to an overdraft facility offered by banks and was launched by Bajaj Finance in September 2012. The first Flexi offering known as Flexi Saver works in 2 ways:

1. Written Down Value (WDV): This is the traditional method in which the principal amount and interest are collected from the customer, i.e. principal increases with tenor and interest decreases
2. Equated Principal repayment (EPR): In this, the principal loan amount is divided equally in through the tenor of the loan in months and interest is charged only on the outstanding principal amount in that month. Hence, in this method, the EMI is not fixed as in the WDV method, as the interest amount varies every month.

The second offering in Flexi that was recently launched in September 2015 is Flexi Pure. In this method, the customer is charged only the interest amount through the entire duration of the loan tenor (x) till the penultimate month (x-1), while the entire principal amount has to be paid back only in the last month of the tenor.

Benefits of Flexi Loans

There are many benefits of flexi loans. Some of the most important ones include the convenience of paying the loan in advance with unused funds, the flexibility to have access to the amount that has been already paid within the drop-line facility at a time of your choice within the timeframe of the loan tenor, absolutely without extra documentation needs.

You also save on a lot of money as you are needed to pay the interest only on the loan amount that you utilize. The amount that has been pre-paid is free from interest charges. Besides these, you are able to use net banking to make advance payments to BFL with the help of RTGS. You are also provided with the self-service facility for drawdown. With websites of most banks you can have trouble-free online transactions realted to flexi loans.

If you want to have the details of your loan, you can do that too without any hassle. For that, the company sends a welcome kit to the customers on their email ids. The kit offered by banks contains certain vital information regarding the loan. It also includes account access details like user id and password. For drawdown transactions, you will also receive details regarding your registered bank account. Other details like the registered mobile number and the unique virtual account number are also included in the kit. And so that the customer understands the product better, a reference service guide is also provided.