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What is Overdraft Facility/ Flexi Personal loan, and how is it different from a personal loan?

Bajaj OD Loan

Nowadays, one has so many options to take credit from rather than depending on friends and family for it. One can take out money from their credit card, avail personal loan if the amount is huge and you want longer tenure and then there is an OD facility one can make use of. While everybody knows the process of credit cards, let’s know more about Flexi loans or Bajaj OD Loan as it is getting more popular due to various reasons. 

Just like a Bajaj personal loan, a Flexi personal loan or Bajaj OD Loan is also an unsecured loan and not secured against an asset like your home or car. One can easily apply for this loan via the official website of a bank, and within moments you will get an answer on that too. To be eligible for a personal loan, you should have a decent CIBIL score. In case you have a poor CIBIL score, your loan application may get approved on other factors such as your job profile, showing other sources of income, etc. Let’s discuss more Flexi loans down below: 

For the unversed, what is a Flexi personal loan? 

A Flexi personal loan is very much similar to your standard personal loan. An overdraft facility allows you to withdraw funds as and when the need arises. Moreover, under this option, the repayment is also easy as one can repay what they borrow at their convenience. However, it comes with a capping on the cash outflow where you can borrow funds up to a pre-approved cash limit as sanctioned by your lender. One can also avail of this kind of loan through Bajaj OD Loan under their unsecured Flexi personal loan. 

Main Features of Flexi Personal Loan

There are many benefits of choosing Flexi Loan. One only has to pay interest on what they use and not the entire amount that is sanctioned to you by the lender. As the amount is pre-sanctioned, you can borrow from the bank or financial institution instantly, irrespective of the fact you are salaried or self-employed. Lastly, there are no restrictions on end-use. Hence, you can use funds as per your requirement or need. 

How does the Flexi Personal Loan Usually work?

Usually, under this type of loan, the financial institution pre-approves your loan amount, and the requested amount is deposited into your loan account. After that, the individual is free to withdraw the funds as and when they need them, provided s/he stays within the credit limit. One of the best parts about this type of loan is the lender calculates the interest only on the amount you have withdrawn from your loan account. That means the amount that you haven’t used or withdrawn won’t accrue any interest. 

How is Flexi Personal Loan Different from a Regular Loan? 

A Flexi loan allows you to repay the principal amount as per your flexibility, and thus, you can manage your income accordingly, but with the personal loan, the EMI has to be paid on time or else you will be defaulting on it, which further comes with charges.


It has become very easy to avail of personal loans considering the attractive interest rates the lenders are offering. All it requires from the individual side is to evaluate your goals and decide on the loan amount you want and then pay the fixed EMI throughout the tenure until the loan amount is repaid. However, there could be chances that you do not use your borrowed amount completely? Then why the interest rate on the full amount? For those people, a Flexi loan can help you out. 

Just like a personal loan can be a saviour during financial emergency crises. Similarly, a Flexi loan too can also be your saviour. It can be utilized for any personal reason, be it medical emergencies or wedding expenses. In case of emergencies, a Flexi loan can be of great help as it allows you to withdraw the desired amount as and when you want to without going through the hassle of documentation, provided it remains within the upper-cap limit. But like with everything else, do check the lender’s credibility and not fall for the marketing gimmicks. 

Also Read: Dedicated Truck Driver.

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