Top What is you loan?Top up loan is a loan in which an additional amount is given by the bank on the loan you already have. It is given on home loan, personal loan and any other loan.
When should I take a top up loan?1-When you already have a personal loan, home loan or any other loan and you need funds.
2- You need an additional loan and want to avoid the hassle of going to the bank and documents.3-Top loan should be taken by those who do not want to run multiple loans at once and are just trying to consolidate their loans.
Advantages of Top Up Loan1- The biggest advantage of taking a Top Up Loan is that being an existing customer of the bank, your loan application gets approved quickly and the money gets credited into your account.
2- Being an existing customer, the bank asks for only the most important documents from you.
3- If your credit history is good and credit score remains above 750, along with you are paying all the EMIs on time, then the bank can give you a loan at a rate lower than the current interest rate.
4- The biggest advantage in this is that even after taking a top up loan, the tenure of your existing loan does not increase.
5- Another great advantage of this is that you do not have to pledge anything extra with the bank when you take a top up loan.