A top-up personal loan allows you to borrow extra funds on your existing personal loan. It covers unexpected expenses with flexible terms and competitive interest rates.
Avail Instant Personal Loans ✓ Loan up to 50 Lakhs ✓ Quick Disbursal ✓ Minimum Documentation!
A top-up personal loan can come to your rescue if you need money in addition to what you initially borrowed. These loans can help you cover unexpected expenditures with ease. The personal loan top-up facility allows you to get extra funds from your current personal loan provider.
You can use this loan to address urgent financial needs. However, the eligibility criteria for these loans depend on the lender. You can now opt for this loan through Bajaj Markets. To get it hassle-free, here are a few details you need to know about top-ups on personal loans.
Features and Benefits of Top-up Personal Loans
These loans provide a convenient way to meet urgent financial needs and come with several benefits. Some of them include:
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 loans is unavailable with every loan provider. The amount and Read Moreother terms also vary from one lender to another. Read Less
Collateral-Free
Typically, you do not need collateral for personal loan top-ups. There is also no need to get a guarantor on board.
No Restrictions on Usage
You can use the money acquired through a top-up personal loan for any purpose. 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 across lenders. Usually, this goes up to 6 years. It is vital to remember that the duration of your top-up loan r Read Moreepayment cannot exceed the tenure of your existing loan. Read Less
Speedy Processing and Disbursals
The quick processing of your loan application is due to the preliminary checks already conducted by the lender. This is because you already have an existing loan with the lender.
Low Interest Rate
Banks and financial institutions provide top-up personal loans at the original interest rate. However, the lender's interest rate policies and your profile may influence the interest rate you get.
Online Application Facility
Lenders offer you the convenience of digitally applying for a top-up loan on a personal loan. This eliminates the need to visit a branch and allows you to apply for credit from the comfort of your home Read More. Read Less
Flexi Hybrid Facility
Some banks and NBFCs offer the Flexi Hybrid facility on a top-up personal loan. It allows you to withdraw funds when needed or prepay as per your choice. This facility is free of charge, and you pay th Read Moree 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
Here is a table representing interest rates for a few partner institutions providing personal loan top-ups:
Banks/Partners |
Starting Interest Rates |
Bajaj Finance Limited |
10% - 32% per annum |
KreditBee |
17% - 29.95% per annum |
SMFG India Credit |
Starting at 13% per annum |
Muthoot Finance |
14% - 22% per annum |
YES BANK |
11.25% - 21%per annum |
IIFL Finance |
12.75% - 44% per annum |
InCred |
Starting at 13.99% per annum |
L&T Finance |
Starting at 11% per annum |
Finnable |
16 - 26% per annum |
Kotak Mahindra Bank |
Starting at 10.99% per annum |
Zype |
18% per annum |
Kissht |
Up to 45% per annum |
Federal Bank |
10.49% -17.99% per annum |
Disclaimer: The interest rates provided in the table above may change depending on the financial institution’s policies.
Most loans include additional charges and fees for certain facilities, along with a few mandatory charges. Check the table to understand these in detail.
Processing fee |
0% – 6% of the loan amount |
Foreclosure Charges |
Vary as per the loan amount |
Part-Payment Charges |
Depends on the loan type |
Disclaimer: As these values vary from one lender to another, please contact your lender to know more.
Getting a top-up personal loan can help you address a variety of needs, some of which include:
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
Here are some key points to understand the differences between a personal loan and a personal loan top-up:
Personal Loan |
Personal Loan Top-up |
Available for all types of borrowers who meet the lender’s eligibility criteria |
Only your current lender provides this loan. In case of changes, you have to move the loan to another lender. |
Loan amount depends on the lender’s limitation |
Your lender will provide the loan according to a fixed percentage of the original loan amount |
Tenure can range from 12 - 96 months |
Tenure is flexible, matching the tenure of the original loan. |
Each type of loan comes with its own eligibility and documentation requirements. Similarly, the personal loan top-up eligibility terms vary across lenders. Some of the terms include:
Repayment Track Record
Maintaining a good repayment history instills confidence in the lender, assuring them you will be able to repay the loan. Because top-up personal loans are unsecured, the repayment method of an existing loan is crucial in approving your application.
Existing Loan
To apply for a top-up personal loan, you need 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
Lenders require 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, increasing the chances of your loan approval.
You need to submit relevant documents when applying for 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
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.
To get a top-up personal loan, complete and submit the online top-up loan application form. Share your professional and personal details.
Choose the loan amount from the lending partner and then add the tenure.
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.
Be it a marriage loan or travel loan; top-up financing comes without any end-use restrictions, like a personal loan. Another benefit is that you can get a top-up on a personal loan without any collateral.
Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.
Frequently Asked Questions
What is the procedure for getting 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. Your lender will provide the top-up loan facility on your existing personal loan. You can use these extra funds without any restriction to meet your financial obligations.
How much top-up loan can a customer get?
You can get 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 advantage 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 it at the same interest rate as your existing loan. However, interest rates can vary based on your eligibility and requirements.
How is a top-up loan calculated?
Financial institutions consider your current loan EMIs to calculate your top-up amount. They assess the Fixed-Obligation-to-Income ratio (FOIR) for your top-up after subtracting current loan instalments.
Is a top-up loan taxable?
A top-up loan is not taxable since the amount you borrow is not part of your income when you file your ITRs. However, you need to get loans from trustworthy and reliable sources to avoid tax deductions.
Can I get a Top-Up Loan on any type of loan?
Yes. If you already possess an existing loan of any type, you are eligible to get a top-up loan.
