Is it good to top up a Personal Loan?
Yes, a top-up facility on a Personal loan can stand in your favour if your current personal loan is not able to meet your goals and you also do not have any other source to arrange funds.
Below, you will get detailed information on why a top-up facility on a personal loan can be helpful for you.
How does a top-up Personal Loan stand out to be handy?
- A top-up loan is good for you but only when you are not able to arrange funds as after all you have to pay interest on this too.
- A Top Up Personal Loan is an additional quantity of funds that you can borrow on a live Personal Loan after all you will need to pay interest on this too.
- As a Personal Loan features flexible end-use for multiple personal purposes like wedding expenses, vacation expenses, medical emergencies, home renovation and more, a Top Up Personal Loan also features the same.
- Key benefits of choosing a top-up on an existing Personal Loan over a new Personal Loan may comprise nominal or minimal documentation while the rate of interest offered remains the same as the originally sanctioned Personal Loan.
In order to perceive more about the benefits of Top Up Personal Loan, take a look at the further post.
Benefits of Availing a Top Up Personal Loan
Below are the major advantages of a top-up Personal Loan. Have a look at them:
- Lower Interest Load
- You can opt for a top-up loan on your existing Personal Loans and use it to repay high-interest debt like credit card dues.
- This can facilitate you to lower your debt load and consolidate your debt to support easier repayment.
- Nominal Documentation
- Typically, similar to a new unsecured Personal Loan, you will not be required to no additional documentation is needed to apply for a Top Up Personal Loan too with most of the moneylenders.
- This is mainly as you have an existing association with the lending institution and the moneylender also knows about your credit and loan repayment history.
- Although, this documentation requirement may differ with every lender.
- Instant Processing
- As you and the lender have an existing association due to the original loan, the moneylender processes the application for a top-up loan quicker than a Personal Loan.
- Consequently, the disbursal of the loan amount happens faster.
- This can assist you in getting access to funds from the moneylender comparatively quicker and therefore use the funds to fulfil your instant financial needs.
- Attractive Interest Rate
- The majority of the moneylenders provide Top Up Personal Loans at the same rate of interest that they offer in the new Personal Loan.
- This is also one of the core reasons why borrowers prioritize choosing a top-up loan if they retain an existing Personal Loan.
- Zero Collateral Requirement
- Borrowers are not required to extend any sort of collateral to avail of a Top-Up Personal Loan.
- They do not ask for a guarantor.
- It also lowers the amount of time considerably taken to apply for a top-up loan as contrasted with a new personal loan application.
- Consolidated Monthly Instalments
- Many banks and financial institutions offering top-up loans allow borrowers to repay their primary as well as a top-up loan using a consolidated monthly instalment.
- This can lower the load of making multiple payments every month.
- It will reduce the odds of missing on loan EMI payments due to a single EMI payment, consequently, your credit score will uplift.
- Longer Repayment Term
- If you avail of a top-up loan, the loan tenure depends upon the due balance, your creditworthiness as well as the loan quantity you are applying for.
- The repayment term of the loan can be longer than the remaining Personal Loan, which is why many people prefer a top-up loan.
- Although, the repayment tenor of a Top-Up Personal Loan can’t surpass the remaining term of the original loan.
- Available for Balance Transfer
- Some moneylenders offer a top-up loan on balance transfer too.
- If you already possess availed a Personal Loan from a moneylender but the lender doesn’t offer a top-up loan, you can transfer your loan to another moneylender.
- This can facilitate you to cope with your new financial needs seamlessly.
The Bottom Stroke
To conclude, the top-up facility on a Personal Loan stands out to be handy when the existing Personal Loan amount is not fulfilling your requirements and you don’t have any other effectual way to arrange the funds.
There are many top-up Personal Loans in the market, i.e., HDFC Bank Personal Loan top-up, ICICI Bank Personal Loan top-up, etc. that you can choose, even though, to grab the best deal, you can turn around Afinoz instant loan app as it has an association with over 33 lenders in the market.