Businesses need capital to stay afloat. So, it is important to find the right source of financing, which is flexible to adapt to the constant changes in day-to-day business activities. These ever-changing business dynamics has led to many lenders providing business loans with flexible EMIs for meeting business challenges and ensuring its smooth running.
Flexible business loans are the new age loans wherein you receive a loan with flexible EMI options to manage the changing needs of your business. A business loan with flexible EMI (also known as flexible business loans) helps one in tiding over their key business activities like managing capital, training expenses, purchase of equipment, expansion and so on.
In this post, we walk you through the key features of flexible EMI loans.
Key Features of Flexible Business Loans
- Borrow as per your needs
Flexible EMI loans give you the option to borrow as per your business requirements. For instance, if you have been sanctioned Rs. 1 lakh as the gross amount of loan for business development, and require Rs.50,000 for purchasing equipment, then you can just borrow the same from your sanctioned loan account.
- Interest Levied Only on the Utilised portion of Loan
The key benefit of Flexible EMI loans is that you will be charged interest only on the utilised amount of the loan. For instance, in the above example, you have utilised Rs.50,000 for purchasing equipment, so interest will be chargeable only for that amount, instead of the total Rs. 1,00,000 sanctioned for business development.
So, a flexible EMI business loan has the benefit of a lower interest amount being paid, though the interest rate will be the same as your term loan interest rate. As such, this option is a pre-approved business loan which is like a credit line that gives the option of using the overall loan amount like a reservoir and getting interest charges only for the utilised amount.
- Pay Only the Interest as EMI
Another benefit of this option is the flexibility with respect to EMI. Here, one gets the benefit of paying the principal on loan whenever one wishes to pay but prior to the end of the loan tenure. This enables you to pay the interest portion as EMI and reduce the amount required to pay each month in EMI’s overtime.
- Easy Loan Approval
A term loan approval process is very cumbersome and has a lot of procedures before being finally approved. For a flexible EMI business loan, the main criterion is the maintenance of a good credit score. The higher the credit score, the higher are the chances of you being sanctioned a higher loan limit. Your credit score is a reflection of the financial prudence of your past credit information. It assures the lenders that you have the financial discipline to pay your EMI in a timely fashion. Check your latest business credit score within a few minutes on CreditMantri. All you have to do is provide a few basic business details and you can get the latest business credit report and credit score within a few minutes.
- Instant Loan Approval in a Hassle-free Manner
Businesses work in a dynamic environment, as such, the rigid and cumbersome term-loan approval process does not work well for them. There is a constant need for funds on a daily basis which makes Flexible EMI loans more popular among businesses.
Such loans are sanctioned requiring extensive paperwork in a hassle-free manner and can also be applied via the online mode. Once the online application is filled up, instant approval is granted within 24 hours provided the eligibility criteria is fulfilled. Once your loan gets approved, a borrowing limit is granted after which you can transfer the loan amount to a loan account within 2 hours. Such a quick approval process makes Flexi loans a popular option among businesses.
- Option to convert Current Loan into Flexible Loan
Flexible loans come with various attractive offers like reduced monthly EMIs, flexible withdrawal and prepayment options or interest as EMIs etc. So it is quite popular as a business loan.
Lenders give you the option of converting any of your existing term loan into a Flexible EMI loan which assures you of a lower EMI. Such conversion option is also available online which can be done in a simple and hassle-free way. This conversion gives the flexibility of utilising only a certain portion of the overall sanctioned loan amount for your immediate business needs and paying interest only on the utilised portion. Convenience is the key aspect of flexible business loans.
Wrapping Up
If you’re looking for business funding, but don’t want to be limited by the restrictions of a term loan, check out flexible EMI business loans. Easy eligibility, quick funding and convenient repayment make these loans a preferred source of funding to meet various business requirements.
