Should One Go For Top-Up Loans?

The best type of top-up loan is for those who already have loans and need financial support at the same while.

It can meet all of your immediate business needs.

It’s more affordable than commercial loans of other types.

What are Top-up loans?

As its title suggests, a top-up loan provides benefits to the borrower far beyond the previous loan. The typical timeframe for this type of loan can be between five and 10 years. Banks can offer this kind of loan to those who already have a personal or home loan. These loans are straightforward to get, but banks must meet certain conditions to approve this type of loan. If your bank does not offer top-up loans, then you may opt to make an account balance transfer to an institution that provides an additional loan to top it up. To be eligible for any top-up loans, you must remain on track with your existing loans and do it with a certain amount of monthly EMIs*.

What are the advantages of top-up loans?

• A top-up loan may be possible only if you already have an existing personal or home loan from that lender.
• If it’s a mortgage top-up, the duration could be anywhere from five to 10 years. If it’s an individual loan top-up, then the term can extend as long as two years.
• Your current home loan or personal credit will determine the loan amount you can get on the top-up loan.
• Your history of repayment for the existing loan, as well as your CIBIL, is a crucial factor in determining your top-up loan approval.
• The top-up loan is generally offered at the same rate as your current loan.
• The truth is that home loan tops typically are only available to help with home renovation, construction purchases, etc. However, you could look into the personal loan top-up option for various requirements, including
• If you need urgent funds to meet your unique needs.
• If you’re looking for an alternative for short-term funding to meet your business needs.
• You’re seeking the loan with only the minimum paperwork.
• To finance your wedding costs such as vacation, wedding, etc.
• If you’re looking for long-term tenure funds with low-interest rates.

Please find out the different aspects of a loan top-up and its advantages.

• It can be used for any personal or professional requirements.
• It only requires minimal documentation and a speedy process for loan approval since you have a partnership with the lending institution that they have your information in previous.
• Lower rate of interest as compared with other loans for commercial purposes.
• Lenders with longer loan duration
• Simple repayment option.

Let’s consider an example to get more clearly:

Imagine you are in the middle of a personal loan you took out two years ago, for a loan of 5 lakhs with 5 years. There is a sudden medical emergency, and you need funds urgently lån let. There isn’t much money in your savings, and the only option available to you is to borrow. In an emergency, you do not have the time to seek a loan and then go through an extensive documentation process and wait for the approval and disbursement. You’re looking for a solution that can provide you with instant cash without delay.

A top-up loan may be the most effective alternative in such a scenario. You don’t have to apply for the loan and wait to get approval. Get in touch with your lender, ask for a credit-based loan, and that’s all there is to it. If you are in the criteria for eligibility, they will approve funds for you in a matter of hours, and you will be able to satisfy your needs.