You can control a wide range of expenses using personal loans. Personal loans help you with all of your financial needs, including costly emergency medical procedures, dream weddings, and stress-free vacations. To help you obtain more funds, many lenders today offer a top-up facility. Learn about the definition, advantages, requirements for eligibility, required paperwork, and application process of a personal loan top-up.
One option that lets you extend your current Personal Loan repayment while continuing to make monthly payments on your existing Personal Loan is called a Personal Loan Top-Up. Like a standard personal loan, this one operates in the same manner, and you are free to spend the money you borrow for whatever purpose without having to put up any collateral or comply with any usage limitations.
If the bank or financial institution already has a personal loan on file for you, they might handle your application more quickly. Once the verification process is over, the loan money is released. This makes these loans ideal for unexpected expenses.
From lender to lender, the documentation may differ. Since the paperwork was completed during the main loan's disbursement, some lenders might not need any at all to apply for a top-up. But some lenders might only need the bare minimum of paperwork to complete the loan application.
Depending on the lender, top-up loans could have lower processing fees or interest rates than new loans.
The top-up loan's term is limited to the initial loan's term. You can therefore select a tenure that is equal to or shorter than your current one.
You are not required to put up any collateral or security as collateral for a top-up personal loan because it is an unsecured loan type.
Your EMIs may be consolidated with some banks or financial institutions. This implies that you can pay back the entire principal loan amount plus the additional loan amount in a single EMI. As a result, you may better organise your payments because you won't need to keep track of distinct due dates.
You have to meet the following requirements in order to be eligible for a Personal Loan top-up:
Since the paperwork and documentation for the existing loan have previously been completed and verified, the documentation process for top-up personal loans is rather minimal. The following are the typical paperwork needed to apply for a personal loan: