A flexible loan is like combination of a regular unsecured loan and an overdraft. You can vary the monthly repayments and there are usually no set up costs.
You also have the benefit of being able to make overpayments as you can afford or even pay off a proportion with a lump sum payment. This can considerably reduce your interest payments and shorten the term of the flexible loan.
When your money is tight a flexible loan allows you to reduce your monthly payments or even take a repayment holiday usually without incurring a penalty. However these facilities will result in you paying more interest.
Many lenders offering flexible loans will make available a fixed amount to borrow and you are then free to borrow as little or a much up to that limit as and when you require. You can then within reason decide what percentage of the loan to repay each month. This kind of flexible loan is idea for something like building an extension where you do not know the exact amount of money you need. You just request the maximum amount you are likely to need and borrow as much as you need. Once the sum is repaid the full amount is still available to borrow again, making a flexible loan a continuous financial benefit.