What Is Semi Flexi Loan?
Whether or not you decide you want to get a semi-flexi loan is going to come down to a few critical questions. You have to make sure you consider these questions carefully.
- Are you a person that’s financially responsible? This means you pay your bills on time and you can make sure you have enough spare cash on hand in case of emergencies?
- Do you want the option to pay off your home loan debt faster, but at the same time you aren’t sure if you’re income is going to increase in the future in order to enable this?
- How disciplined to you believe you can be should you make advanced payments on housing loan debt? Will you be able to actually let the money go towards the debt sometimes or would you always be looking to withdraw?
Answering the above questions is important because it provides you a pretty good idea of what type of housing loan you should apply for.
In most cases a semi-flexi loan is the perfect option for most people. Firstly it doesn’t have the same stringent requirements as other loan types have. Secondly, you don’t have complete control over the extra money you would deposit, which might work better for you if you’re someone who struggles with financial discipline.
Here are some of the primary components of a semi-flexi loan:
- Anytime that a borrower decides that they want to make an additional payment to their total loan amount, then they can do it. The additional money a borrower would pay could be used in order to lower the principle in order to save money on interest charges. What this does is it makes a loan more affordable.
- Unlike if you were going for a full-flexi option, you wouldn’t have the ability to take out the extra money you made towards the loan anytime you wanted. You would have to notify the bank (usually by means of written notice) within a few days of processing. Also there are some consequences to taking out added money. A borrower would get charged interest depending on the amount they withdrew. Every withdrawal made would also come with a fee.
- There is typically no checkbook associated with these types of loans, so this means there should be no monthly fees due to this.
- These types of home loans work best for families that would qualify as being working class. These are families where one or more person within the house works, but the overall household income isn’t that high. When additional money comes into the picture for any reason, then maybe it’s decided it would be a good idea to make some additional payments towards the home loan in order to lower interest.
Understand that with this type of loan it can work in order to help you knock down your interest and total loan amount, but all of this only works if you make regular payments in order to stay in good standing with the bank. Should something happen and you fall behind, then the option to withdraw additional money using this method wouldn’t really be an option anymore.
As with anything related to banks or credit you’ll need to prove you’re someone that can be financially trusted. You would want to show consistency above all else. For instance, if you deposit extra money into your loan account with a semi-flexi loan, then you wouldn’t want to get into the habit of requesting withdrawals too often.
If you request withdrawals too often not only will the fees start to add up, but it would make you look bad to the bank. Full flexi loans not so much seeing as how the degree of trust you’re afforded from the beginning is so much higher (providing you a checkbook along with an ATM card in most cases, you don’t get this with a semi-flexi loan).