To fulfil some dreams, you don’t need to wait for your savings to stack up. With personal loan, you can cover varied expenses, be it purchasing a new gadget or a vacation. But
what if you have exhausted your existing loan and need additional funds? To cover the expense of such needs, you can get top-up loans.
To know about loan top-up meaning, how it works and how you can get it, read on.
A top-up loan is a loan facility provided by your lender over and above an existing loan. When in need of excess funds, you can apply for this loan.
The loan top-up process is quite simple as it is provided by the same lender. After the approval of the loan, the lender adjusts the existing repayment tenure as per the terms of the additional loan.
For instance, say you take a personal loan to cover the cost of renovating your home. But what happens if you need extra funds to upgrade your kitchen appliances? You can contact the same lender to provide you with a top-up loan.
The following are some of the aspects that you get to enjoy with a top-up loan:
A top-up loan comes without any use-related restrictions. It means that you can use the funds for varied purposes.
For most top-up loans, lenders adjust the repayment tenure to match that of your existing loan. This makes repayment seamless as you do not have to track two different schedules.
Since you can get this loan from the same lender on top of an existing loan, you save on many aspects of the application process. The time and effort you spend applying for top-up loans is usually less as compared to applying for a new loan from scratch.
The interest rate on top-up loans is generally lower as compared to other consumer loans. So, you can save on interest payments by taking this loan.
To get a top-up loan, follow these simple steps:
If your existing lender does not provide this facility, you can opt for a personal loan balance transfer. This will allow you to shift your loan to a lender that provides a top-up loan facility.
To enjoy credit that is easy to use and repay, you can always go with Fibe’s Instant Loan. For your personal needs, you can get funds ranging between ₹5,000 and ₹5 lacs without any questions asked. Simply download the Fibe instant loan app or visit the website to get started and upgrade your life!
A top-up loan is an additional loan facility that you can get in addition to your existing loan. To get this loan, contact your existing lender and apply online. Once the lender approves your application, you get the sanctioned amount in your bank account.
To get a top-up loan, you will need to submit the documents that your lender requires. While these can vary from one lender to another, you will usually need to submit:
You can take a home loan to buy a home or property. This secured loan has a well-defined purpose. In contrast, you can take a personal loan to meet urgent financial needs. There is no limit on usage. Both loans come with a top-up facility. So, you can choose the ideal one based on your needs.
Since you have already taken a loan from the lender, they set easy eligibility criteria for top-up loans. Most lenders have a simple online application process for such loans, making it easier for you to apply and receive the funds. Moreover, you require less paperwork to get approval on such loans.
Yes, many lenders provide the facility to foreclose your top-up loan. However, they may charge you a penalty fee for the same.