Finbros School of Credit
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What Is a Personal Loan and How Does It Work?
A personal loan is usually an unsecured loan that lets an eligible borrower receive a fixed amount and repay it through monthly EMIs over a predetermined tenure. Since collateral is generally not required, lenders consider factors such as income, credit history, existing debt and repayment capacity when deciding whether to approve the loan and what terms to offer.
What Is a Short-Term Loan?
A short-term loan is a form of credit that must be repaid within a brief period, typically ranging from a few months up to 36 months, and is used to meet urgent or temporary financial needs. Lenders in India offer these loans as personal loans, payday loans, gold loans, or business working-capital loans, usually with faster approval and smaller ticket sizes than long-term loans.
What Is a Flexi Loan?
A flexi loan is a credit facility where a lender sanctions you a maximum limit, but you withdraw only what you need and pay interest solely on the amount used, not the entire sanctioned limit. It works like a revolving credit line similar to a credit card, letting you borrow, repay, and re-borrow within your approved limit until the tenure ends.