With Personal Loans, you can manage all sorts of expenses. Whether you need to pay for urgent medical surgery, plan your dream wedding, or a relaxing vacation; Personal Loans help you do it all. Today, many lenders even provide a top-up facility that gives you access to more funds. Let’s find out what a Personal Loan Top-Up is and understand its features and benefits, eligibility criteria, documentation, and application process.
A Personal Loan Top-Up is a facility that allows you to borrow more money from your existing Personal Loan lender while you are still repaying your ongoing Personal Loan. The loan works in the same way as a regular Personal Loan, and you can use the funds from the loan to pay for all kinds of expenses without providing any collateral, nor are there any end-use restrictions on the loan funds.
Just like your original Personal Loan, the Personal Loan Top-Up is an unsecured loan wherein you do not need to pledge any collateral.
The lender may extend your tenure if you opt for the Top-Up facility. However, the new tenure cannot exceed the five-year general Personal Loan repayment tenure.
If you have repaid the EMIs of your existing Personal Loan on time, the lender may consider offering a lower interest rate on the Top-Up Loan. This reduces the overall cost of your Personal Loan considerably.
Lenders are not bothered about how you intend to use the funds from the loan. They do not even ask you to list reasons for obtaining the Personal Loan or Top-Up Loan.
The Top-Up Loan allows you to obtain a high loan amount within the confines of the maximum loan amount provided by the lender.
If you opt for a Top-Up loan after repaying the EMIs of your existing loans in a timely manner, your credit score will be enhanced. A high credit score makes you appear credit-worthy to lenders and allows you to obtain loans easily when needed.
Personal Loan Top-Up—Documentation
Lenders generally ask you to provide copies of your ID, address, and income proof documents, the same set of documents submitted while availing the original Personal Loan. That said, some lenders may not insist on documentation and consider the documents submitted when obtaining the original loan sufficient.
You can apply for Top-Up Loans offline by visiting the bank branch of your existing lender or online, directly through the lender’s website. The process remains the same, wherein you must fill out an online form, mention the required loan amount, and submit your documents. The lender then determines the new interest rate and EMI amounts (which you must agree to) and disburses the loan amount into your account.
You can effortlessly obtain a Top-Up Personal Loan as an existing HDFC Bank Personal Loan customer. You can apply for Top-Up Loans by clicking here and get access to higher loan amounts. Enjoy a flexible repayment tenure, attractive interest rates and budget-friendly EMIs on your collateral-free Top-Up Personal Loan.
Read more on how to leverage a Personal Loan by clicking here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.