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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.

Features and Benefits of Top-up Personal Loans

Available for Existing Personal Loan Borrowers

With an existing personal loan, you may be eligible for a top-up personal loan amount of up to ₹50 Lakhs. Remember, the top-up on personal loan is not available with every loan provider. The READ MOREamount and other terms also vary from one lender to another.  READ LESS

Collateral-Free

Typically, top-up personal loans are offered without collateral. There is also no need to get a guarantor on board for the same.

No Restrictions on Use

You can use the money acquired through a top-up personal loan however you may like. Use the funds to pay for medical treatment or to set up a home theatre system – the options are endless.

Flexible Repayment Tenure

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.

Speedy Processing and Disbursals

Your loan application is processed very quickly due to the preliminary checks done earlier by the lender. This is because you already have an existing loan with the same lender.

Low Interest Rate

Banks and other financial institutions generally provide top-up personal loans at the original interest rate. However, the lender's interest rate policies, as well as your profile, may influence the inREAD MOREterest rate you get. READ LESS

Online Application Facility

Lenders offer you the convenience of applying for a top-up loan on a personal loan digitally. This eliminates the need to visit a branch and allows you to apply for credit from the comfort of your homeREAD MORE. READ LESS

Flexi Hybrid Facility

Some banks and NBFCs offer the Flexi Hybrid facility on a top-up personal loan. This allows you to withdraw funds when needed or prepay as per your choice. This facility is free of charge, and you pay READ MOREthe interest only on the sum that you withdraw. READ LESS

Transparent Process

A top-up personal loan comes without any hidden charges and allows you to apply without coming across any surprises. You can get clarity at every step by checking the terms and talking to the lender’s READ MOREcustomer support team.  READ LESS

Fees & Charges of Top-up Personal Loans

Along with a few mandatory charges, most loans include additional charges and fees for certain facilities. Check the table to understand these in detail. 

Processing fee

0% – 6% of the loan amount

Foreclosure Charges

Varies as per the loan amount

Part-Payment Charges

Depends as per loan type

Disclaimer: As these values vary from one lender to another, please contact your lender to know more.

Why Apply for a Top-up on a Personal Loan?

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:

  1. Loss of job 

  2. Sudden medical treatment 

  3. Increase in home renovation costs 

  4. Shortage of funds during a wedding 

  5. Upskilling or education 

  6. Setting up a freelance business

  7. Meeting a short-term financial gap

Personal Loan Top-up Eligibility

The personal loan top-up eligibility terms vary across lenders. Your top-up loan eligibility is influenced by the given factors:

  • Repayment Track Record: Maintaining a good repayment history gives confidence and assurance to the lender that you will be able to repay the loan. As top-up personal loans are unsecured, how you are repaying your existing loan plays a crucial role in the approval or rejection of your application.
  • Existing Loan: To apply for a top-up personal loan, it is mandatory to have an existing loan with the same lender. 
  • 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.

  • Display of Financial Capacity: A lender requires you to show your financial capacity through your income, employment records or bank statements. This gives the lender confidence that you are likely to repay on time and the chances of your loan approval increase.

Documents Required for a Personal Loan Top-up Facility

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

  • Passport-size photographs

How to Apply for a Top-up Personal Loan

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

 

  • Step 3: Submit the required documents with the completed application form

 

 

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.

FAQs on Personal Loan Top-up Facilities

What is the procedure for availing a top-up loan?

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.

When can I apply for a top-up loan?

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.

How much top-up loan can a customer avail?

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.

Can I get a personal loan if I already have 2 loans?

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.

Can I top up my existing personal loan?

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.

Is a top-up loan good or bad?

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.

Is a top-up loan expensive?

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.

How is a top-up loan calculated?

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.

Is a top-up loan taxable?

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.

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