Top-up on Personal Loan

Personal Loan Top Up

Although you can get the Personal Loan instantly to meet your needs, there are chances that the loan amount you availed may not be sufficient. In such a case, you can apply for a Personal Loan top-up. You can either choose to merge the personal loan Top-up with your existing loan, or avail it as a separate unit.

The personal loan top-up facility available is a reliable and flexible option to meet your financial needs. If you opt for a new loan that will cover both your existing loan amount and the top up, you will get one consolidated EMI amount comprising the entire value. Or else, if you opt to get a new loan to cover your financial requirements, you will pay separate EMIs for your existing loan and the loan Top-up.

Reasons to Apply for Top-up Loan

Apart from an existing loan, you may need a top-up loan to fulfill your financial requirements hassle-free. Here are the major reasons to apply for a top-up loan.

• Debt Consolidation:

If a customer has multiple loans, with a top-up option he can merge all the bills into one single debt, such that the overall rate of interest gets reduced. Debt consolidation can have a positive impact on your credit score.

• To Fulfill Other Financial Requirements:

Though you have availed a personal loan to meet your needs, sometimes you might need extra financial assistance. Top-up loan is the best option then. While your personal loan may serve one need, top-up loan will serve the others. You can choose a top-up loan from any bank and not necessarily from the lender that you chose for the personal loan. Using the personal loan balance transfer facility, you can transfer your existing loan amount, get lower rate of interest and then apply for a top up loan.

Features and Benefits of Personal Loan Top-up

If you have availed a personal loan you can consider applying for a top-up loan instead of going for a separate loan to meet your financial needs.

Let's have a look at some of the major benefits of a top-up personal loan.

• Reduce Loan Burden

By availing a top-up loan on your personal loan you can pay off all other loans. Consolidating the loans can help minimize the overall interest cost which is the main reason opting for a top-up loan is the best option.

• Minimal Documentation

The documentation required to apply for a top-up loan is minimal for most of the banks. Having an existing relationship with the bank makes things easier as they have the complete credit and loan repayment history of the customer.

• Quick Processing

A bank where you have an existing relationship with processes the application for a top-up loan faster than a personal loan. Therefore, the loan amount disbursement is faster as well.

• Interest Rate

Most banks offer attractive interest rates on personal loan top-up as compared to other kinds of unsecured loans. Thus, it’s best to opt for a top-up loan if you already have an existing loan with the bank.

• No Collateral

Most banks do not ask for any security or collateral when they avail a top-up loan.

• Longer Loan Tenure

When availing a top-up loan, the loan tenure depends on the outstanding balance, your repayment capacity as well as the loan amount you are applying for.

• Available for Balance Transfer

Some banks offer a top-up loan on balance transfer. For any reason, if you're willing to change your bank, you have the option to transfer your loan to another bank.

How to Apply for a Personal Loan Top Up?

In case you are an existing customer with a bank/NBFC, you can apply for a top-up loan, in case the facility is available. If the top-up facility is not available, you can transfer your current loan to other financial institution using a balance transfer facility, and then apply for the top-up loan with them.

Personal Loan Top Up Eligibility

The eligibility criteria for top up loans vary from lender to lender. But here are some generic factors that affect the eligibility of the Personal Loan Top Up

• Repayment Track: 

Having a good repayment history gives an assurance to the lender that you will be able to repay the loan. Since Personal loan top-up is unsecured product and no collateral is involved, the risk it encompasses also increase. Hence, having a good credit score and good repayment record is very necessary.

• Existing Loan:

A top-up loan is the loan offered above the existing loan. Hence to apply for a top-up loan, you must have an existing loan.

Calculate personal loan eligibility with personal loan eligibility calculator.

Documents Required for Personal Loan Top Up

• Identity Proof: Aadhaar card/PAN Card/Voter ID Card/Passport

• Address proof: Rental agreement/Passport/Electricity or Gas bills, etc.

• Salary slips or bank statement of last 3 months.

• Passport-sized photographs.

Personal Loan Interest rates and fees

Avail a personal loan with enjoy complete transparency. There are no hidden charges at all. We offer these loans with low fees, competitive interest rates and nominal charges. You can know more about the fees and charges with Finserv MARKETS here.