Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

Although both Flexi-personal loans and term loans can be used to fulfil your financial requirements, they are inherently different. The forms of finance are different from each other based on different parameters. Let us understand the difference between Flexi personal loans vs. Term loans: 

Nature of Borrowing

A Flexi-personal loan is like an overdraft limit. It allows you to borrow funds up to a maximum pre-decided limit at a pre-decided rate of interest. Flexi-personal loans allow borrowers the freedom of availing funds whenever required. Term loans are a pre-decided amount at a fixed rate of interest that is required to be repaid as per the pre-decided repayment schedule. 

A borrower who has been granted the limit can withdraw a part or the entire amount depending on their requirements. Interest will only be charged on the withdrawn amount. The maximum limit is determined based on the borrower’s eligibility and the lender’s policy.

Interest Payable

Term loans attract a fixed rate of interest on the entire amount borrowed. Flexi-personal loans, on the other hand, attract interest only on the amount used and not on the entire amount that can be borrowed. For instance: if you are eligible for a loan of approximately 12 lakhs but end up withdrawing and using only 4 lakhs, you will be required to pay interest only on the borrowed amount.

Utilisation Flexibility

The borrower is expected to repay the principal amount as well as the interest in the form of EMIs as per the repayment schedule. The same logic is also applied on a flexi-loan, except that the calculations will only be applied to the withdrawn amount. On the other hand, a personal loan which has been sanctioned will require you to pay EMIs on the entire amount, despite how much you have used.

Both types of loan offer a flexible repayment tenure and allows users to repay the loan whenever they have additional funds. The repayment schedule of the loan is pre-decided at the time of borrowing.

Thus, the following conditions make Flexi-personal loans the better choice:

  • When you have no idea how much you need
  • When you need different amounts at different points of time
  • When you need to make multiple payments 
  • When you don’t have access to credit cards

What Paperwork Required for Personal Finance?

The documents required to verify your eligibility for a personal loan include:

  • Applicants desirous of applying for a loan are required to submit a copy of their salary slips of the previous three months.
  • Self-employed applicants are required to furnish a copy of their business earnings and their current account statement of the previous six months.
  • Applicants are required to furnish their KYC documents that might include their Voters ID, AADHAR Card, etc. 
  • PAN is compulsory
  • Bank statements of the past 6 months

Our personal loan eligibility calculator can help in calculating the approximate amount you are eligible to borrow in a few simple steps. 

What Criteria Need to Fulfil to Apply for a Personal Loan Online?

The conditions to apply for a loan includes:

  • Candidates between 21 to 60 years and should be salaried or self-employed can apply for a loan. 
  • Salaried applicants should earn at least Rs. 25,000 in metro cities and Rs. 20,000 in other places all over India. 
  • Self-employed professionals should earn a basic minimum turnover after tax depending on the type of business they are engaged in.
  • A credit score of 750 or above can help in availing a loan easily and can help in negotiating rates of interest.
  • The applicant should possess work experience of at least a year and six months of experience in the company they are working for (salaried applicants).

How Can I Apply for a Flexi- Personal Loan?

You can complete the loan application process in a few simple steps from the comfort of your home. All you need to do is visit our website and follow a few simple steps:

  • Click on the "Apply now” button  on this page to begin your journey
  • Enter your mobile number for verification. Post verification of your mobile number, you will be required to enter other details.
  • Upload your documents
  • Submit your application. 

As per in the information provided in the online application, your eligibility will be determined. If yes, you will be given an instant in-principal approval. Our representative will get in touch to take your application further.

You could also apply for a loan through our mobile application (only if you are salaried) or walk into any of our physical branches (self employed and salaried) and get in touch with our staff who will guide you through the application process.

Calculate Your EMI  

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

Reasons to buy

You can take our personal loan for a variety of reasons.

Wedding Expenses

Wedding Expenses

Higher Studies

Higher Studies

Exotic Vacations

Exotic Vacations




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