As the name described, a Top-up loan is a type of additional loan on your existing home loan, mortgage loan, or long or short-term personal loan. No matter, if you are paying your debts and making EMI to your bank, based on their terms and conditions related to Top-up loans, you can easily avail the benefits of this loan. You need to contact your lender in this regard. This loan can be used to meet several types of finances including medical bills, immediate cash crunch issues or making a big purchase. Many financial institutions in the country offer a variety of genuine top-up loans at similar rates of interest that you are availing in your existing loan. They also provide a quick approval procedure with low documentation.
Advantages of Borrowing Top-Up Loan
Here are the benefits of borrowing a top-up loan.
Minimize Loan Burden
Top-up loans help individuals to consolidate debts and thus most people prefer to borrow this loan as it provides many flexibilities in reducing your burden of debt. In this way, you will get a minimized interest rate on your new loan. You can easily pay off all your existing loan debts using top-up loans as they can be easily borrowed over secured and unsecured loans like car loans, home loans or short-term personal loans.
Fewer Documents Needed
While applying for the top-up loan, you will be asked for very little documentation work by your lender or the banking institution. There are several reasons behind it that the banks and the lenders already know that the particular person has close ties with the bank and has already indulged in the financial field. They are aware of the credit score of the individual. In case you want to know how much top-up loan you can apply for, then you can easily use a reliable online top-up loan calculator to calculate the value of your loan.
Instant Approval
Since your bank knows that the person is associated with your banking services, the process will be quick for the approval or your top-up loan but you need to undergo several types of verification processes, but it will also be very minimal. The disbursal of the amount is also quick as the bank knows all your credentials and it provides a great way to get immediate access to funds after quick approval.
Rate of Interest
The rate of interest matters the most and most of the banks provide top-ip loans to individuals at very low interest rates. You need to contact your bank to check the top-up interest rate. Your banking official will know you very well as they know it’s our customers who have already borrowed loans from us be it short-term personal loans or a secured one like a home or car loan. You can get attractive interest rates from your banks as compared to several secured loans.
No security or Collateral Required
Just like long-term or short-term personal loans, collateral is not needed in applying for a top-up loan in India. Most banks don’t ask for the collateral asset if you are purchasing a personal loan or a top-up loan. Also, they won’t ask you for any guarantor or co-borrower. These things not only make the entire application procedure an easier one but also minimize the total time taken to process your application for taking this loan.
Longer Repayment Tenure
Just like secured loans, you can get longer tenure for debt repayment. Based on the outstanding money and the desired loan amount in a top-loan loan, banking authorities will provide you with a longer duration. It is much better and longer than personal loans. You can easily use an EMI calculator in order to calculate your loan EMI amount for a particular period of repayment.
Summary
Top up loan is an additional loan that is given even if you have any other existing loan like a short-term personal loan or a secured loan in hand.
