“Can I get top up on a personal loan?” – If this has been on your mind lately, then worry not! Yes, it is indeed possible for you to avail a top-up on your personal financing, and if you didn’t know, numerous lenders and financial institutions do offer this nifty feature.
How to avail of a top-up loan?
Accessing a personal loan top-up is not a challenging task. You can apply for it from your existing lender if they offer to provide you with this additional loan to your already active one.
However, if they don’t offer top-ups, you can shift your existing finance option from the current lender to another. To do this, you’ll require a balance transfer, after which, you can apply for top-ups from the new lender.
Eligibility terms for a top-up option
While personal loan top-ups are vastly available, you must meet these eligibility criteria for the lender to grant you one:
The top-up on personal loan eligibility requirements vary across lenders, but there are two broad categories which you must fulfil. Firstly, you must have a healthy repayment track record that assures your ability to repay the lender or institution. Since top-ups are unsecured and entail no collateral, the risk is equally high. Hence, a good CIBIL score and repayment history are mandatory.
Secondly, you must have an existing loan to get the top-up in the first place. Without that, a financial institution will have no grounds to grant you a top-up.
Features of a top-up loan
Top-ups are quite reliable, and flexible as well, catering to whatever financial need of the hour it may be. Here are its numerous features for you to leverage: –
Higher loan amounts
Lenders and institutions usually offer at least Rs. 1 lakh as a top-up, if you’ve paid three EMIs of your existing loan. Add to that, no collaterals, and you’ve got a winner.
Consolidating debts
If you have multiples loans, then a top-up is a massive solution. With it, you can amalgamate all bills into one debt, which will reduce the overall interest rate. Moreover, consolidating debts can also boost your credit scores!
Simpler documentation
Since you have a pre-existing relationship with the lender and they already know about your repayment record and CIBIL scores, there is minimal documentation to grant you a top-up.
Longer tenures
Top-ups typically depend on your repayment capacity, outstanding balance, and mainly on your existing loan’s remaining duration. Hence, you can avail one at a tenure ranging anywhere between one to five years.
In times of need, you know where to look for help
Financial crunches are often unpredictable, but now you know where to go for the right assistance. If you already have a personal loan but need extra support, a top-up awaits you. With the array of benefits it offers, why not choose it?
