Flexi business loans are types of business loans where the loan lender approves a loan limit for the business owner. The loan limit is generally sanctioned for a specific time period which is one year or so. Once the limit is sanctioned, the business owner can withdraw funds within the specified limit at any time. 

This type of loan helps business owners to be proactive in their requirement of funds rather than applying for a loan when there is a dire requirement. Business owners can withdraw the amount of loan as and when required by them. One of the underlying conditions for this loan is that you can use the funds only for business and related activities.

How do Flexi loans work?

Flexi loans are credit facilities that are available for business owners so that they can apply for a loan and get it approved for a tenor. You are not required to borrow the full amount in case of Flexi loans. You can choose to borrow the amount you need for your business in the case of Flexi loans. You as a borrower can withdraw funds as many times as required and the interest is charged only on the borrowed amount and not on the entire loan amount. 

How many times can a borrower withdraw the loan?

There is no limit on the number of times funds can be withdrawn in the case of Flexi loans. If we take an example if a business owner borrows a sum of Rs. 5 lakhs, there is an option for the business owner that he can either borrow the whole sum or borrow the funds in part. The business owner can borrow the funds as and when the requirement occurs for him.

Can I apply for a Flexi loan online?

Yes, Flexi loans can be applied online. You can visit the lender's website and apply for these Flexi loans. You may have to fill in the application form and also upload the required documents on the lender's website.

What are the documents required for Flexi loans?

  • Personal KYC: PAN Card
  • Residential Address Proof (Anyone): Rent agreement, Driver’s License, Voter’s ID, Ration Card, Aadhaar Card, Passport
  • Last six months’ current account bank statement
  • Business KYC (Anyone): GST registration certificate, shops and establishment certificate
    Financial Documents (For loans greater than 20 Lakhs): 2 years audited financials, last 2yrs ITR, GST returns of 6 months

What are the eligibility criteria for business Flexi loans?

Age Criteria

Minimum 21 years and Maximum 65 years

Eligible Entities

Individuals, SMEs, MSMEs, sole proprietorship, partnership firms, public and private limited companies, limited liability partnerships, retailers, traders, manufacturers engaged in only services, trading, and manufacturing sectors

Business Vintage

Min. 1 year and in profit

Business experience

Minimum 2 years and business location to remain same

Annual Turnover

Min. Rs. 10 lakh and above 

Credit Score

650 or above


Indian citizen should not have defaulted on any previous loan

Additional Criteria

Applicant must own either a residence, office or any property 

What Is the Maximum Business Loan Amount You Are Eligible for?

To Eligible for the maximum business amount depends on various factors

  • Age of the Applicant
  • The nature of the business, the applicant’s financial history, the source of revenue, and the applicant’s CIBILTM score
  • Revenue and vintage of the business
  • Capacity for repayment and creditworthiness 
  • Stability or profitability of a business

Can I prepay a flexi business loan?

Yes, a flexi business loan can be repaid without any penalties or charges. Most of the NBFCs and online lenders of flexi loans will provide an option to prepay the loan without any extra charges levied for the same.

How to calculate EMI for flexi business loans?

Most of the online lenders and other platforms that provide flexi loans will have flexi loan calculators on their websites. This helps the borrower to know the EMI in advance and prepare their budget accordingly.

How long does it take the lender to disburse the flexi loan?

Flexi loan lenders will take approximately 3 days for the disbursal of the funds. The process of disbursal takes place once the loan application has been duly filled by the borrower and the lender has verified and approved the application.

How much time is taken for approval of a flexi loan?

It takes around 2 days for the approval of a flexi loan by the lender.

How old should a business be for availing a flexi loan?

The business should be started and running for at least two years before applying for a Flexi loan.

Do flexi loans need collateral for approval?

No, most of the flexi loans either provided by NBFCs or online lenders do not require any collateral for approval of the loan.

What is the minimum turnover for a business applying for a Flexi business loan?

The minimum turnover or the minimum sales of any organisation while applying for a Flexi loan should be at least Rs. 2 lakhs per month.

Small businesses can apply for a flexi loan with lower turnover also. In the case of these businesses, the instant business aid option is available and hence they can take advantage of the same.


A flexi loan is an affordable option while considering an expansion or an immediate need for funds. It is easy to obtain a loan and the interest rates are also attractive. The businesses can plan the availing of loans proactively and can manage the loans easily with repayment options available for them. The loan amounts start from Rs. 50,000 and are available for Rs. 10,00,000. The documentation process is also hassle-free. There are no hidden charges and it is one of the best options to obtain credit for businesses.