What are the Key Benefits of Prepayment and Partial Payment of Personal Loan - FlexSalary

What are the Key Benefits of Prepayment and Partial
Payment of Personal Loan
At the need of the hour, a personal loan will always be the most opted choice as it
helps you get cash urgently. Because of its flexibility and easy accessibility, personal
loans are everyone’s choice. Most of the personal loans are unsecured and hence
does not pledge for any asset as collateral.
The standard criteria followed to apply for a personal loan is you must be at least 21
years of age, salaried or self-employed and have a stable source of income. This is a
general rule and may differ from one lender to another. To avail a personal loan,
many lenders expect you to have a good credit score usually above 750.
Personal loan uses:
You can use a personal loan to buy consumer durables, plan your dream wedding,
pay for your health treatment, consolidate your debt, pay for your child’s tuition fees
etc. Whatever is the reason, you can use a personal loan for anything.
Repayment period of a personal loan:
The repayment period for a personal loan ranges between 12-60 months. To save
money that you pay as interest, some people repay their loan in full before the tenure
is completed. Some people use the entire tenure to repay the loan while some
people prefer prepayment and some even make partial prepayments.
What is a personal loan prepayment?
In general, when you get a loan, you repay the loan in EMIs (equated monthly
instalments) till the end of your loan tenure. However, few people might have surplus
cash available with them, which is more than enough to close their loan by paying
the outstanding principal. By doing so, they can save a huge amount of money which
would have rather been spent as interest amount. Based on the lender chosen,
prepayment penalty can also be charged.
What is a personal loan partial prepayment?
You can close your loan partially, which is referred to as a partial payment. In this
case, you pay the principal amount partly, when the principal amount reduces,
automatically the rate of interest also reduces. Hence, it provides an opportunity for
you to save your money.

By paying a small amount, you can save a little amount of money as it helps reduce
both your EMI as well as the interest rate. This is the main benefit for opting a
personal loan with partial prepayment.
Why FlexSalary?
NBFC (non-banking finance company) provides personal loans instantly, as they
quickly approve and disburses funds in an instant. There is one NBFC called Vivifi
India Finance Private Limited with its loan offering product called FlexSalary.
FlexSalary provides flexibility to the salaried professionals, so they can repay the
loan amount either partially or completely.
With FlexSalary, it is very easy to apply for an online personal loan anywhere from a
minimum amount of INR 4,000 to a maximum amount of INR 2,00,000. Irrespective
of the location, you will be approved instantly on the same day you have applied.
Finally, with a good credit history and surplus repaying of your loan can also build a
good credit score.