What is Flexi term loan?

A Flexi Loan or Flexi Personal Loan is similar to an overdraft facility, which allows you to borrow funds up to a certain limit approved by your lender. In this type of personal loan, the interest is charged only on the amount used and not on the amount sanctioned.

What is difference between Flexi loan and personal loan?

In traditional personal loans, the approved loan amount is disbursed in a single payment. There are no constraints on how much money you spend. Meanwhile, in a Flexi loan, you cannot exceed a borrowing limit. You can withdraw funds within this limit.

What is the difference between a loan and a term loan?

A loan may be secured by collateral such as a mortgage or it may be unsecured such as a credit card. Revolving loans or lines can be spent, repaid, and spent again, while term loans are fixed-rate, fixed-payment loans.

Do flex loans check credit?

Flex loans come with a credit limit. You’ll be charged interest for amounts you’ve borrowed. Flex loan lenders may not require a credit check. But as with virtually any type of credit, the more risk the lender assumes, the higher the interest rate you’re likely to pay.

What is Flexi facility?

FlexiReserve is a facility that allows you to withdraw any extra money you’ve paid into your home loan over and above your monthly repayments. Your extra payments will reduce the size of your loan while they are in your account. Then, if you ever need cash in a hurry, you can withdraw it using your FlexiReserve.

Is term loan a personal loan?

While personal loans, business loans, etc., are unsecured forms of term loans, advances like home loans qualify as secured term loans sanctioned against collateral. Term loans are available at both fixed and floating rates of interest. It is up to the borrower to decide which type of interest to opt for.

What is an example of a term loan?

A form of loan that is paid off over an extended period of time greater than 3 years is termed as a long-term loan. Car loans, home loans and certain personal loans are examples of long-term loans.

Can you pay off flex pay early?

You can choose to pay more than the minimum at any time, however, and there is no prepayment penalty applied if you pay your balances off early. You also will not earn credit card rewards on your loan.

What is the difference between a term loan and flexi loan?

Though the loan amount is crucial, the type of loan – flexi or term – is an important factor to consider. While term loans have been the traditional method of funding, Flexi Business Loans are a new concept in the market. Both these loans differ on various aspects that you should know as they can affect operations and your repayment strategy.

What are the disadvantages of a full flexi loan?

However, it should be noted that there 2 disadvantages to fully flexi loans: Typically, most banks charge a monthly fee for the maintenance of the current account, ranging from RM5 – RM10 a month. Between Term Loans and Full-Flexi Loans, some banks offer a better interest rate for a Term Loan.

What is a full-flexi loan in Malaysia?

The full-flexi (or flexi loan) in Malaysia offers customers versatility, over and above the semi-flexi loan products. This type allows borrowers to make additional payments or withdraw excess sums from their current home loan, WITHOUT the elaborate approval procedures!

How is interest calculated on a flexi property loan?

So, if a customer has taken a full Flexi property loan of RM500k with a bank and the customer has RM400k in cash parked inside the linked current account, interest calculations will only be based on the net loan balance, which is RM100k. This saves the borrower RM400k in interest.