Everything you need to know about personal loan top up

Life is uncertain. It often happens that after you take out a loan, you need to avail another one soon. Nevertheless, there are only a few who understand the fact that this is not a handy way to get additional funds. Instead, they consider a top up loan.

A Top up loan is an additional amount that you can avail of on a prevailing loan after you have made a few EMI payments.

Top-up loan is frequently availed across personal loans. In this post, we will stringently focus on the significant factors that one should know in case musing to avail of top-up on personal loans.

Who Can Avail?

One can avail of a top up loan if he/she possesses an existing personal loan. So, having a personal loan works as a plus point once you are trying to find a second. Borrowers who have already availed of a loan from a particular financial lender can apply for a personal loan top-up.

A top-up personal loan stands out to be a good option for such borrowers to beat their additional financial concerns. 

What do you need to keep?

At the day-end, any loan holds some risk for the lender. Consequently, they need to be convinced. To be eligible for a Personal Loan top up, the interested borrower has got to satisfy the lender for the same.

As an applicant, you'll be required to keep a suitable repayment history. The lender also will carry out a few verification checks. Do not worry in case the lender asks you why you would like to avail of a top up Personal Loan.

Acceptable Reasons for applying

There are many who are aware that what Personal Loan top up is, but even they are not fully aware of the various scenarios in which it can be availed.

One among the most significant reasons is home renovation. Another use might be personal in nature, such as settling some old debt. You can also avail of a Personal Loan top up facility so as to get a plot of land, to acquire another property, or to buy consumer durable products.

Businessmen can also avail of a top up loan to fulfil any business requirement. Parents can get it with the aim to meet the expenses associated with their children’s education or marriage. In several events, such loans also are also availed for the purpose of paying off the medical expenses.

Features & Benefits of top-up personal loan

 When you avail of a top-up facility on personal loans, you are entitled to relish some appealing features and benefits. Let’s take a look at some of them:

• Attractive rate of interest 

The rates of interest for a top up Personal Loan are generally slightly above the prevailing loan. Top up facility on personal loan can be unsecured in nature as usual personal loan is; this means 1 or 2% extra rate of interest will be offered to you.

Given the fast approval and disbursal, borrowers relish an abundance of benefits on availing a personal loan top up facility.

• Tax benefits

Many do not possess the knowledge that a top up Personal Loan can cause a tax break. Yes! This can be benefited on top up loans provided the quantity sanctioned by the lender is employed for the acquisition of a house (principal and interest). You can also attain tax benefits if the funds are being taken into usage to renovate your home.

• No collateral required

Personal Loans are unsecured in nature. This signifies that you are not required to submit any collateral so as to avail of a Personal Loan. This rule applies to top up loans too.

By charging you a slightly extended interest rate, the financial lender takes care of the matter of collateral. Therefore, if you do not possess any security, don't worry.

• Adequate loan amount

Typically, a top up Personal Loan is often 70% - 80% of the prevailing personal loan which is quite a good sum and will be adequate to fulfil many of your needs. Do bear in mind that you simply cannot borrow an amount within the top up loan as it is needed to have a prevailing loan for a borrower.

The bottom stroke

To wrap up, top-up facility on personal loans is a smart option and a smart decision if you choose it in case you need further fund facilitation after an existing personal loan.

This will not only mitigate your stress of performing extensive research, remembering multiple due dates of different credit facilities but also you will get better deals than availing a new loan.

Moreover, out of many HDFC Bank personal loan top-up stands out to be a great option as it offers top-facility of up to Rs. 40 lakhs without taking any collateral from you and if you are seeking a new loan, you can download the Afinoz loan app from the Google Play Store, compare multiple loan offers and apply for the one that suits as per your requirements and situation.