Indeed, yes, you are permitted to withdraw from your sanctioned personal loan as and when required. This is allowed as many times as need falls upon. This is either one time or transactional to fill spaces whenever need arises. Money gets credited in the account when you put request for money. When we are looking at intermittent payments out of the loans. Personal loans are the most suitable when the loan is not likely to be fully disbursed.
Once the loan amount is credited to you, it is for you to decide to channel its direction. No such restriction exists on the number of withdrawals and amount of withdrawal. You are allowed to withdraw as long as money exists in the account.
How is the interest charged on partial withdrawals from personal loan?
Although, partial withdrawals are allowed on the full personal loan, however there’s a catch! Interest is calculated on the entire value and not on the withdrawal amount. This is made possible when the personal loan EMIs are pre-determined and it does not change with the used loan amount.
When a borrower agrees to have a flexi loan, it is agreeable to pay interest only on the amount used. A flexi loan is suitable when the balance amount is slowly consumed. This is a separate category of personal loans where interest is charged only on the amount withdrawn and not approved amount.
What purposes could be targeted with partial withdrawal?
A partial withdrawal from the instant personal loans can be effectively be used specific purposes. Partial withdrawal is allowed for marriage, education, purchase or construction of a house, purchase of plot, home improvement, repayment of home loans, so on and so forth.
1) Marriage: A partial withdrawal can be easily used up for your own marriage or daughter/son’s or other close relations.
2) Education: Any partial withdrawal can be put to use for all post matriculation education of son or daughter. Under certain conditions, the money can be easily allocated for future aspirations.
3) Purchase or construction of a house: Partial withdrawal from a personal loan can also be done to buy or rebuild your house.
4) Home Improvement: A personal loan can also be distributed to put into house renovation and purchases. This could be regular repair work or full swing beautification.
5) Medical emergencies: A personal loan withdrawn can be used for medical emergencies. It is applicable for medical treatments of oneself, children or dependent parents.
6) Repayment of home loans: Repayment of home loans can also attract borrowers for quick withdrawal from time to time.
7) Retirement: A person can withdraw his or her partial personal loan for all retirement related needs.