Flexi Loans Explained: A Simple Loan Option on PalmPay
As fintechs move to revolutionalize traditional banking services, mobile banking platforms like PalmPay have expanded access to a wide range of financial services for the underbanked- from secure payments, money transfers to flexible loan options. One such loan option is ‘Flexi Loans’, a third-party service available on the PalmPay app.
While PalmPay is a comprehensive fintech platform with Flexi as just one of the many independent merchants available on the app, misconceptions have emerged, with some users mistakenly identifying PalmPay solely as a loan provider. It is important to note that there is no such product as “PalmPay Loans”.
To clarify the distinction, this article will explain what Flexi loans are, how they work, and how they complement the extensive suite of financial services on PalmPay.
What Are Flexi Loans?
Flexi Loans, powered by Blooms Microfinance Bank and regulated by the Central Bank of Nigeria (CBN), provide users with quick and accessible loan options. Available on the PalmPay platform as a third-party service, Flexi Loans offer added convenience for PalmPay users seeking lending services. The Flexi app is also available on either the Play Store or Apple App store which also supports the fact that the brand operates independently and is solely responsible for all aspects of loan issuance and collection.
How Flexi Works and Its Offerings
Flexi provides two main types of loans: Flexi Cash and Flexi BNPL, which can either be accessed through the dedicated Flexi app or on the PalmPay app. Users can choose to repay amounts either through automatic deductions from a linked bank account or card, or manually by crediting their PalmPay wallet if the service was assessed through PalmPay. Users who have demonstrated responsible repayment as seen from numerous testimonials, can get an extension on their credit limit over time, which simply means that a user’s credit limit increases based on consistency and good credit record. With consistent, timely repayments, customers can see their credit limits increase, providing greater access to funds over time.
Flexi Cash Loans – These are withdrawable cash loans that can be used for personal or business needs. Loan amounts vary and depend on the user’s repayment consistency and credit history. The repayment period ranges from 7 days to 4 months, with interest rates between 0.6% and 1.5%, depending on the loan size.
Flexi BNPL (Buy Now, Pay Later) – This product allows users to make purchases within the PalmPay app and repay over time at a 0% interest rate. It is specifically designed for users who want to purchase items within the PalmPay marketplace without upfront costs.
Responsible Use of Flexi Loans
While Flexi loans offer ease and flexibility, it’s essential to use them responsibly to avoid debt accumulation. Borrowers should withdraw only as needed and plan repayments according to their financial capabilities. When users are unable to meet the repayment deadline, 3%-5% late fees begin to accrue daily.
Flexi also prioritizes transparency by providing information on fees for late payments, ensuring that users are informed and can avoid extra costs.
Why PalmPay Hosts Flexi on Its Platform
Nigeria’s evolving loan culture reflects a growing demand for accessible credit, driven by limited traditional banking reach and a rise in digital financial services. According to the Enhancing Financial Innovation & Access (EFInA) report on financial inclusion, about 67% of Nigerians are either underbanked or completely unbanked. This lack of access has fueled the growth of non-traditional lending options.
PalmPay, as a fintech platform, aims to enhance financial accessibility and inclusion by hosting third-party financial services like Flexi. This approach not only meets user demand but also supports PalmPay’s mission to serve as an all-encompassing digital finance platform.
To learn more about Flexi’s loan offerings or need support, you can reach Flexi’s customer care team directly at support@fleximfb.com. For the latest updates, follow Flexi on their social media channels:
● Instagram: https://www.instagram.com/flexiofficialng/
● Twitter: https://x.com/flexi_ng
● Facebook: https://www.facebook.com/flexiofficialng
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Source: Legit.ng
