Flexible loans are usually provided by a conventional loan company such as a bank and this type of financial assistance can be structured in various ways, usually to the satisfaction of both the lending company and the borrower.
One example on the flexibility of a loan is by allowing the disbursement of a single payment but at the same time allowing the borrower to get more money in the future provided they have paid back a sizable amount of the loan amount.
Some personal loan licensed money lenders Singapore would give borrowers a ceiling and just allow them to withdraw from it, if and when they need it. A flexible loan in Singapore is a type of a bank loan (if availed from a conventional bank) or personal loan that requires regular payments.
Any late payments will incur surcharges and other fees agreed upon by the two parties, but in severe cases, the lender or the banking institution that provided the financial help may choose to freeze the existing loan and to no longer allow any changes or amendment on the existing loan until full payment for the obligation have been settled.
Generally, flexible loans are types of loans that do not have a specific amount of cash or denomination to be released to the borrower.
It does not have a defined value, allowing the borrower to define the amount that he may need depending on his or her current financial requirements. The application and approval of the loan are quite simple and that is to just fill out a loan application, file the same along with the required documents and wait for the final approval of the loan.
A very useful application for a flexible loan is when individuals do not know exactly how much money they would need. This is usually because the funds are to be used to remodel a house or to augment business expense wherein the financial needs are quite erratic and not exact.
The beauty of the flexible loans is that they give borrowers a chance to get the money that they need without incurring additional debt but this is only as long as the borrower is consistent and religious in meeting repayment terms.
Although, applying for this loan may be fast, easy and its flexibility quite beneficial to the borrower, lending companies that provide this type of loans normally requires the loan applicant to have a good and preferably an excellent credit rating or score to qualify.