Top-up Personal Loan

Top-up personal loans can come to the rescue of an individual if they need more money over and above what they had initially borrowed. Top-up loans can come in handy for those individuals who need to meet the unexpected additional expenses. If the borrower has displayed a healthy loan repayment behaviour, he will be eligible for a top-up loan. This article will take a deeper dive into the features, benefits, and the application process one must follow to avail a top-up personal loan.

Top-up Personal Loan Interest Rates

The interest rates at which some of the leading Indian lenders offer top-up loans are as follows:

Features and Benefits of Top-up Personal Loan 

• Available for Existing Personal Loan Borrowers: If the borrower has already taken a personal loan, they should be able to get a top-up of up to ₹50 Lakhs on that. One must note that not every lender offers the top-up personal loan facility and the maximum amount the borrower can avail will depend on their eligibility.
• Collateral-Free: Typically, top-up personal loans are offered without asking for a collateral in exchange. The borrower may not even be asked to get a guarantor on board for the same.
• No Restrictions on Use: The borrower can use the money acquired through the top-up personal loan however they like it. The borrower can use the funds to pay for the renovation of their home, their dream vacation, or to set up a home theatre system.
• Flexible Repayment tenure: The borrower can pay the entire personal loan amount, inclusive of the money received through the top-up loan, over a time period of up to 60 months. One must note that the repayment tenure length cannot exceed the one that was previously agreed upon.
• Speedy Processing and Disbursals: As the individual is an existing personal loan borrower, the top-up personal loan money will be processed faster as the lender has already done some of the preliminary checks. In most cases, once the application is approved, the top-up personal loan money is credited into the account of the borrower within a day.
• Low Interest Rate: Banks typically offer top-up personal loans at the interest rate that is applicable to their original personal loan. However, personal loan top-up interest rates also tend to depend on the lender‘s policies and the credit profile of the borrower.

Why Apply For Top-up On Personal Loan

Some major reasons to apply for a top-up loan are as follows:

• Debt Consolidation: If a customer has multiple loans, he or she 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 the credit score of the borrower.

• To Fulfil Other Financial Requirements: Top-up loan is the best option for those that need some extra financial assistance. Such loans prove to be useful when unexpected financial needs arise.

Personal Loan Top-up Eligibility

The eligibility criteria for top-up loans vary from lender to lender. Some generic factors that affect the same are as follows:

• Repayment Track Record: A good repayment history gives an assurance to the lender that the borrower will be able to repay the loan. As top-up personal loans are unsecured, repayment history plays a crucial role in deciding the fate of the top-up loan application.

• Existing Loan: One must have an existing loan account to apply for a top-up loan.

How to Apply for Top-up Personal Loan

One can apply for a top-up personal loan by simply following the steps mentioned below:

• Step 1: One must first submit the online top-up loan application form with their personal and professional details.

• Step 2: Next, the user must choose the loan amount they desire from the lending partner and add the loan tenure.

• Step 3: After that, the applicant must provide all the required documents along with the application form for verification.

• Step 4: Once approved, the top-up loan amount will get credited into the bank account of the applicant typically within 24 hours.

Documents Required for Personal Loan Top-up

One will require the following documents to get the top-up personal loan:

• Identity Proof: Aadhaar card, PAN, Voter’s ID, passport

• Address Proof: Rental agreement, passport, electricity/gas bills, etc.

• Salary slips or bank statements for the last 3 months

• Passport-size photographs