When it comes to Business, Capital is the most important thing one need for establishing and running a successful Business. Business is quite a risky thing where one can make profit but on the other hand there can be a situation when cash crunches can happen. Your clients may not pay you on time, you may have some urgent requirements to fulfil such as buying inventories, paying your staff, expanding your business and many more. For situations like this business loan is always considered best. But to have a business loan one had to first apply and then wait for the process to complete. Business Loan application to disbursal can take from 7 to 15 days in general case with most of the bank. This part causes difficulty for many borrowers who have urgent requirements. To overcome this inconvenience Flexi Business loans are now here, through which you can get money immediately whenever you need.
What are Flexi Business Loans?
- Flexi Business Loans are new-age business loans where a borrower gets a credit line (limit) which can be used whenever required. Through this loan, one can fulfil business needs related to capital crunches, equipment purchase, business expansion, staff training and even much more.
- One can borrow as much required from the credit line as many times he/she wants.
- Interest is charged only for the utilized amount not for the full credit limit.
- Part-payment is allowed according to your convenience and there is no charges for this.
What are the Benefits of Flexi Business Loans?
- You don’t need to apply every time you need capital. You have to apply only once.
- It has the Option to pay only interest as the EMI.
- There is No extra charges on part-prepayment of the borrowed amount.
- Withdrawal of funds is possible as many times as you need.
- Online withdrawals and payments are also allowed for easy access
- Interest is charged is on daily basis, it is as per the amount used at the end of per day.
- It allows smaller payments in the initial phase of the business and higher payments as the business grows with time.
- It supports a lot in your business and help you become a big Entrepreneur.
Flexi EMI Plans under Flexi Business Loans
Flexi EMI plans under Flexi Business loans consist of- Step up Flexi EMI plan and Step down Flexi EMI plan.
- Step Up Flexi EMI Plan
Every business has a potential to grow with time if there is proper plan, investment. With the Flexi step up plan of Flexi Business loan you can increase your EMIs with the growth for your business.
For example- when you are running a business and you have observed that it is growing with time with a profit of 10% in first year and 20% profit next year. Even if you believe this strongly that your business has a potential to grow every year then STEP UP FLEXI EMI PLAN is best option for you. By opting for this you increase your EMI with time. Suppose for a loan amount of 10 lakhs you were paying an EMI of INR 20,000 per month. With the increase in profit of your business you can increase the EMI of your loan and you can start paying INR 30,000 next year. In this way you will be able to repay your loan in a shorter duration as compared to when you go with a normal repayment plan. You can save a lot through this!
- Step Down Flexi EMI Plan
Increasing your EMI with growth in your business has a point. But there are many borrowers you already have a well established business and they want to end the loan as soon as possible. In this case one can go with STEP DOWN EMI PLAN. Under this plan one can start paying the EMI as a big amount and can reduce later with the reduced outstanding amount.
Since interest cost is higher in the starting years, and bearing a higher EMI today can help you to save a lot over the long run.
Here for the same amount say 10 lakhs you can start your EMI with 40,000 per month and can reduce it to 30,000 next year and 20,000 in the next two year.
- Bullet Flexi EMI
The above two EMI plans were for the borrowers you have growth in their business or have an already established business. Bullet Flexi EMI is different from those two plans as it is for those borrower business man who want to utilize there unexpected profit of the business.
Considering the example above, Bullet Flexi EMI plan provides a flexibility to pay more amount at the end of the year. Apart from paying INR 20,000 per month the customer can pay extra INR 50,000 at the end of the year which might be an unexpected profit from the business. By doing this the loan will end in less time hence the customer can save on the interest rates too.
Let’s Understand Flexi Loans through Comparison with Business Loans
- Loan Amount
Flexi Business Loans offer a credit line which is flexible. One’s credit line will be directly proportional to your credit score that means higher will be the credit score, the higher will be the credit line.
On the other hand, in the general Business Loans, loan amount offered doesn’t completely depend on the credit score. Business reputation in the market, cash flow and collateral given against the loan are the factors on which the loan amount depends.
- Interest Rate
In Flexi Business Loans the interest rate charged is not on the complete credit line but it is on the amount which one withdraw from the credit line.
Flexi Business Loans offers flexibility in repayments too. For this loan one can repay under step up flexi EMI where EMI increases with growth of business and time, step down flexi EMI where EMI can decrease with the time.
- Loan Disbursal Time
Generally the disbursal of Business loans takes 7 to 15 days with most of the banks as it involves lots of paperwork and process. But with the Flexi Business Loan you need to just approve your credit line by the bank this can take 1 to 2 day and after that you can withdraw you desirable amount from your credit line whenever you need. It will just take an hour process.