5 reasons why a Flexi Loan is the ideal financing option for MSMEs

5 reasons why a Flexi Loan is the ideal financing option for MSMEs

MSME loan for new business ventures to serve as a good source of capital, it should ideally cater to the ad hoc nature of the spending requirements of a start-up.

5 reasons why a Flexi Loan is the ideal financing option for MSMEs

Medium, small, and micro-enterprises form the backbone of the country’s service and manufacturing industry, and for a vibrant MSME sector, the circulation of timely and adequate liquidity is a must. New businesses, especially, need funding to acquire premises, invest in equipment, meet working capital demands, launch products, purchase raw material, and more. Without capital to leverage, a new business faces the prospect of losing out to the competition.

For an MSME loan for new business ventures to serve as a good source of capital, it should ideally cater to the ad hoc nature of the spending requirements of a start-up. This is what the Bajaj Finserv Flexi Loan does. Here are the 5 benefits of the Bajaj Finserv Flexi Business Loan that MSME owners can rely on.

Ample capital with no collateral

For a new business, access to funding is often restricted. Either the eligibility criteria are too demanding, or lenders require business owners to provide security or a guarantor. However, with Bajaj Finserv there is no such limitation. You can avail of funding for your new business without putting a personal or business asset at stake. With no valuation required, approval is quick too.

Depending on your eligibility you could get approved for up to Rs.45 lakh. Here, it is of vital importance that you maintain a high credit score and a spotless repayment history. This paves the way to high-value unsecured financing at competitive interest rates.

Borrow when you need, prepay when you can

The unique part about the Bajaj Finserv Flexi Loan is that you get a loan limit against which you can withdraw funds and prepay them when you have surplus funds. As opposed to a traditional loan where the entire amount is transferred to your account, here, you have the option to withdraw funds as and when the need arises. The major advantage is that, with a Flexi Loan, you can tailor your borrowing to your current expenses with greater precision.

As a new MSME, in the hospitality sector for instance, it can be difficult to forecast seasonal demands, especially at present. With too many variables at play, you may end up overborrowing (and spending too much on interest) or underfinancing your projects (and hence having to take on less). The Flexi loan gives you a way out of such a situation.

You can borrow and prepay funds, as many times as you wish; and thereby, utilise funds and replenish your account without hindrance.

No extra charges, documentation, or applications

What makes this feature of borrowing and prepaying extremely attractive is that you can do so at zero extra charges. The option to prepay at nil charges can be immensely helpful to an MSME that needs funding at the present but is expecting a steady flow of income down the line.

Moreover, as an MSME owner, you waste no time in making fresh applications as none are needed. You can simply withdraw funds without documentation or applications and have instant MSME finance at your fingertips. You can, both, borrow and prepay funds through Experia, the online customer portal. Simply log onto the portal with your credentials to view your current loan status and make transactions.

Limit your interest outgo to what you utilise

As mentioned earlier, the Flexi loan offers you a loan limit, and the good part is that you aren’t charged interest on this entire limit. You incur interest on what you withdraw or utilise from this limit. In the case of a regular business loan for MSMEs, you would pay interest on the entire sanction. Here, interest is charged daily, depending on how much you use by the end of the day, and you can save on your net interest payment by borrowing tactfully.

Pay up to 45% lower* instalments

When taking an MSME loan for new business projects it is necessary to plan for repayment. Normally, you would expect some of the project’s revenue to aid repayment; however, it can take time for your business plans to generate optimal results. What do you do during the initial period? You could rely on your cash reserves; nevertheless, the Bajaj Finserv Flexi Loan has an alternative, that is, the option of paying interest-only EMIs for the initial part of the tenor. Here, you pay just the interest component of your instalment as EMI and this can reduce your monthly outflow by up to 45%*.

These 5 benefits outline why a Bajaj Finserv Flexi Loan makes for a powerful MSME loan for new business ventures. Bajaj Finserv assures you of no hidden charges, so read through the fine print to assess the cost of borrowing and the charges attached to the premium features this loan offers. Once you have this funding option aligned to your business plan, apply online and get hassle-free MSME finance to scale up your business!  

*Terms and Conditions Apply

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