On Tuesday this week, Bajaj Finance Ltd. announced about its quarterly results that the profits fall by 19.40% to a consolidated net profit at Rs 962.32 crore for the quarter ended June 30. It had posted a net profit of Rs 1,195.25 crore in the corresponding quarter last year.
The Indian NBFC has transformed a considerable amount of its term loan into its new product called ‘Flexi loan’, this new product gives the buyer’s facility of deferred repayment of loans on the principal amount for around one to two years. Bajaj Finance Ltd. is charging some fees for the conversion of term loans to Flexi Loans.
Bajaj Finance’s Flexi Loans is a new type of borrowing fund introduced in India which provides Pre-Approved Loan Limit based on the borrower’s credit rating. It also provides the facility to its customers to borrow only that much amount which they need from the pre-approved loan limit, and they will pay interest only on the amount they have used.
Also, the Borrowers have the facility to prepay the utilized amount whenever they got enough funds, and, they can pay only the Interest Amount as the EMI for the first year.
The Flexi Loan facility is available to all the Salaried Persons, Self-Employed Individuals, Professionals, Businessmen and MSME and they can apply for the loan and get the loan limit as per their credit ratings.
Bajaj Finance also stated that it had turned Rs.8,600 Crores amount of term loans into Flexi loans out of which Rs.5,000 Crores loan amount belongs to borrowers who did not want to delay loan repayments under the moratorium, and amount of Rs.3,600 belongs to them who want moratorium treatment.
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