A top-up personal loan can come to your rescue if you need money over and above what you had initially borrowed. These loans can help you cover unexpected expenditures with ease.
The personal loan top-up feature allows you to obtain additional funds from your current personal loan provider. With positive repayment behaviour, your eligibility and chances of approval for a top-up personal loan increase.
To borrow hassle-free, here are a few details you need to know about top-up personal loans.
You can repay this loan within the same timeline as a personal loan, which differs from lender to lender. Usually, this goes up to 6 years. It is vital to remember that the duration of your top-up loan repayment cannot exceed the tenure of your existing loan.
Along with a few mandatory charges, most loans include additional charges and fees for certain facilities. Check the table to understand these in detail.
0% – 6% of the loan amount
Varies as per the loan amount
Depends as per loan type
Disclaimer: As these values vary from one lender to another, please contact your lender to know more.
Availing a top-up personal loan can help you address a variety of needs. Here are some of them.
Debt Consolidation: If you have multiple loans, you can merge all of them with a top-up personal loan to reduce the overall interest rate. The act of consolidating debt can have a positive impact on your credit score.
To Fulfil Other Financial Requirements: A top-up loan is ideal when you need additional financial assistance. Such loans prove to be useful when unexpected needs arise due to:
Loss of job
Sudden medical treatment
Increase in home renovation costs
Shortage of funds during a wedding
Upskilling or education
Setting up a freelance business
Meeting a short-term financial gap
The personal loan top-up eligibility terms vary across lenders. Your top-up loan eligibility is influenced by the given factors:
Good Credit Score: Having a good credit score is essential to getting a top-up personal loan. It indicates that you have a strong financial profile and have repaid credit responsibly in the past. Thus, a CIBIL score of 750 or above can increase your chances of approval for this loan.
You need to submit relevant documents when availing a loan, as this helps the lender in verifying your identity. Here are some top-up loan documents required by most lenders:
Identity Proof: Aadhaar card, PAN, Voter’s ID, passport
Address Proof: Rental agreement, passport, electricity/gas bills, etc.
Bank statements or salary slips for the last 3 months
Applying for a top-up personal loan is a convenient and simple process that you can carry out online. With the help of the steps mentioned below, you can send in your top-up loan application.
Step 1: To get a top-up personal loan, complete and submit the online top-up loan application form, sharing your professional and personal details
Step 2: Choose the loan amount from the lending partner and then add the tenor
Once approved, you will receive the personal loan top-up amount in your bank account typically within 24 hours. That’s all it takes to apply for a top-up personal loan at Bajaj Markets.
Getting a top-up personal loan is quite beneficial, as it protects you from any financial burden you may be facing due to a shortage of funds. You can use top-up funds in a manner similar to how you use your personal loan amount.
Be it a marriage loan or travel loan, top-up financing comes without any end-use restrictions, just like a personal loan. Another benefit is that you can get a top-up on a personal loan without any collateral.
Before you apply, make sure to use the personal loan EMI calculator to compute your EMIs well in advance. All you have to do is check if you meet the required personal loan eligibility criteria and apply for it at attractive personal loan interest rates today!
Personalized choices for Loans, Cards, Insurance, Investments & UPI Payments along with No Cost EMI offers to shop for a wide range of lifestyle products – discover more on the Bajaj Markets App.
The procedure for getting a top-up personal loan varies as per the lender. At Bajaj Markets, you can follow a handful of basic steps, as mentioned above, to get a personal loan top-up.
You can apply for a top-up personal loan when you require funds but do not want to take a traditional second loan. The top-up loan facility is provided on your existing personal loan. You can utilise these additional funds without any restriction to meet your financial obligations.
You can avail up to ₹50 Lakhs over and above your current loan. The final top-up personal loan amount depends on your profile and eligibility, which you can confirm with the lender.
Yes, you can apply for a personal loan even if you have two existing loans. All you need to do is meet the lender’s eligibility criteria and showcase a strong repayment ability. However, the eligibility terms are stricter if you already have a loan.
To get funds easily without taking another separate loan, you can look into a top-up personal loan. This facility can provide you with additional funds and assist you in addressing your needs.
Yes, you can get a top-up on a personal loan. This helps you get extra funds over and above your current personal loan without having to take a separate loan. However, the availability of this facility depends on your lender.
A top-up personal loan facility can be an advantageous option for you to consider, as it helps in getting funds without the hassle of applying for a new loan from scratch. It involves a straightforward process and minimal documentation.
No, a top-up facility is not expensive, as most financial institutions provide a top-up personal loan at the same interest rate as your existing loan. However, interest rates can vary based on your eligibility and requirement.
Financial institutions take your current loan EMIs into consideration to calculate your top-up personal loan amount. They evaluate the Fixed-Obligation-to-Income ratio (FOIR) for your top-up personal loan after subtracting the instalments of your current loans.
A top-up loan is not taxable since the amount you borrow is not considered a part of your income when you file your ITRs. However, you need to avail loans from trustworthy and reliable sources to avoid tax deductions.