Borrowing becomes essential, especially for specific purposes such as any medical emergency, for buying a new house, wedding expenses, home renovation or construction etc. In all those times, including unforeseen emergencies such as COVID, when we all are stressed about getting financial assistance, a personal loan remains one of the most convenient options to avail funds. However, if you already have a personal loan, then a personal top-up loan is the immediate solution for all your financial needs.
What is a personal Top-up loan?
A personal top-up loan is the loan amount that you can avail over and above your existing loan amount. It can be availed by all the existing borrowers who have a good repayment record and fulfil the basic eligibility criteria of the specific lenders.
Before knowing about the eligibility criteria of these loans, let us know about some of the features and benefits.
Features & Benefits of Top-Up Personal Loan:
A personal top up loan is the best solution to get funds for an emergency, and it offers the following features & benefits.
One of the significant advantages of these loans is that it can be disbursed very quickly. There are many reasons for the same. One, as the borrower has already gone through a similar process earlier, it takes less time for completion of formalities. Another reason why top-up loans are disbursed quickly is that the borrower and the lender have a good relationship with each other.
Also, a personal top up loan can be availed with minimum documentation and formalities as the lender is already familiar with the borrower’s financial condition.
Borrowers can avail the same features on top up loans as provided under personal loans. Thus, the top-up personal loans have no restrictions on end-use and can be availed for multi-purposes, including medical expenses, travel expenses, expenses for the home construction or renovation and much more.
Lower Interest Rates:
If the funds availed as the personal loan does not fulfil all your financial requirements, you could additionally take a personal top-up loan instead of availing a fresh loan. It is because these loans are provided at a lower rate of interest than personal loans. While the interest rate may differ slightly still, they can be a huge difference to overall costs.
A personal top-up loan can be availed without any security or collateral like a personal loan.
Are you eligible for a personal top-up loan? Should you avail it?
You can get a personal top-up loan from your existing lender if you fulfil the following eligibility criteria:
- Have a good repayment record.
- Have a good CIBIL score.
- Have a stable job.
- Have paid specific EMIs on your loans. It differs from lender to lender. Generally, you should have paid at least 12 EMIs.
A personal top-up loan is indeed the best choice if you have an existing personal loan and require funds. You can easily get a top-up loan if you have a good repayment record. Not only it provides quicker disbursal of loans as the borrower does not have to go through the same process of checking eligibility, comparing rates, submitting documents etc. Apart from that, the borrower can also save his costs of borrowing if opted for a personal top up loan.
Also, Read: Benefits of Demat Account