How Flexible Loans Work & How Can They Work for You – Our Guide
December 19, 2019One aspect of taking out a loan that most borrowers tend to struggle with is the monthly payable, which can be overwhelming. For many borrowers, money may not come in as stable as they expect after they take out the loan.
In spite of common apprehensions towards seeking financial assistance due to horror stories of missing out on monthly payments, there’s one option that seeks to fix the issue: flexible loans.
What is a flexible loan?
Alternatively referred to as a “flexi loan,” a flexible loan is a form of financial assistance that allows any borrower to increase or decrease the amount they borrow so that they can change the repayments. In some cases, a standard flexible loan may also stick to its namesake so well that certain lenders will occasionally miss out on a payment or two every once in a while.
Flexible loans are best for major financial investments that result in significantly larger monthly payments with accompanying interest rates. Whether it may be for a house, car, business, or major medical treatment, a flexible loan can be used to provide a certain level of stability for anyone looking that may not be on stable financial ground.
Purchasing a home and paying off the mortgage every month, for example, maybe adjusted at some point in time during the more financially rocky months. This is not only keeping payments constant but also a borrower’s financial status in the clear. As a more accessible and hassle-free option for struggling borrowers, flexible loans are the improved version of a refinancing process, but works are one smooth process instead of a multi-segmented one.
What do banks assess when you apply for a flexible loan?
For the most part, banks and lenders that offer standard flexible loans tend to place a significant amount of importance on an applicant’s credit history when deliberating between approval or rejection. Before applying for a flexible loan for any need you may have, it is advisable to build up your credit history by waiting things out a little longer with consistent monthly payments.
Depending on the type of lender you work with, however, your application may be subject to several additional criteria, such as job security, credit scores, and the extent of your history as a patron of the lending authority.
How long does it exactly take for the money from a flexible loan to come through?
When it comes to approval and granting deadlines, the amount of time it takes for the money from a flexible loan to come through can vary for a variety of reasons. In some cases, the principal amount can be deposited in only the span of a day—and in other cases, granting can take anywhere between a week or two.
Several factors, ranging from whether you applied online or inline or the total amount of cash you applied to borrow, can add or reduce to your expected waiting time. It is best to ask the lender or loan provider for an estimated time first to get a better expectation of when the money from a flexible loan application will come in.
Flexible loans provide any borrower with a form of financial assistance that is much easier to work with as compared to other types of loans in the market. Through the use of flexible loans, you can pay what you can and whenever you can, on your own terms—all at little to no risk.
If you’re in South Africa and would like to take out fast loans, feel free to contact Hoopla Loans today! We’re happy to help.