Millennials’ bucket list keeps evolving through the year. And, why shouldn’t they? After all, with every new experience, there’s a yearning for more, for bigger, for better!

The 20s and early 30s are undoubtedly the best years of a millennial’s life – whether it’s picking up a new hobby or many hobbies, honing an existing one, traveling across the world or just about anything! Even sky isn’t the limit. But, this is also the time when careers are shaping, there’s a lot of experimentation at the professional front and all of this means; salaries are often not very high or fluctuating and don’t allow one to indulge in their adventures, freely.

Thankfully, there’s a solution. Digital lending platforms are continually innovating on a wide range of flexible, customized and highly convenient loan products to meet these growing demands of millennials. From premium bikes to weddings, travel and rental deposits, there are several types of loans available today. But, what if there isn’t a loan yet that is customized for you? This is where an EMI-free loan steps in!

EMI-free loan is a new kind of loan where the monthly outflows are as much as 40 per cent lower than a personal loan. You need to pay only the interest on the total loan amount every month and the principal amount can be repaid in a series of bullet payments.

EMI-free loan has quite a few other advantages you must be aware of:

1. Minimum income: All you need is to earn a minimum salary of Rs 30,000 per month.

2. Relaxed repayment options: This means that for the first six months, you can pay only the interest part of the EMI. When the going gets relatively better, you can start paying 10 per cent of the principal as well and this is called, bullet repayment. Depending on your bullet repayment, total loan balance reduces and fresh interest calculations effected.

3. High Flexibility: The product gives you a choice to increase or decrease your principal repayment. For instance, if you know there’s a Diwali bonus or a hike, which means extra cash, you can restructure your payments accordingly to pay a higher bullet repayment for that particular timeframe.

4. Lowest tenure when compared to bank loans and credit cards: While most banks have a lock-in period, where you cannot close the loan before a certain time period, credit cards and EMI free loans don’t have the same conditions. Still, credit cards have shorter tenures, of just about 30 days to make the repayment and that’s where they fall short.

For instance, if you take a loan of Rs 1 lakh for 5 years bank will charge a monthly instalment of Rs 2327, a credit card company will charge 5% of the total amount due as minimum monthly payment – amounting to Rs 5,000, but in the case of an EMI-free loan it will only be Rs 1,500, plus all other benefits.

5. Quick disbursal: After submitting your application, and post the necessary verifications,the loan disbursal or cash transfer in the account is done within 24 hours. With the automated and almost paperless processes in place, the turnaround time for processing your loan is faster and convenient for you.

6. Transparent processes: This loan option has no hidden charges, no pre-payment charges and with minimal documentation and secured processes, loans are made available in a seamless manner.

(By Satyam Kumar, co-founder & CEO, LoanTap )