With Personal Loans, you can manage all sorts of expenses. Whether you need to pay for urgent medical surgery or plan your dream wedding or a relaxing vacation, Personal Loans helps 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, understand its features and benefits, eligibility criteria, documentation, and application process.
What is Personal Loan Top-Up?
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.
Personal Loan Top-Up—Features and Benefits
Unsecured loan
Just like your original Personal Loan, the Personal Loan Top-Up is an unsecured loan wherein you do not need to pledge any collateral.Extended tenure
If you opt for the Top-Up facility, the lender may extend your tenure. However, the new tenure cannot exceed the general Personal Loan repayment tenure of five years.Lower interest rates
If you’ve 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.No end-use restrictions
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.High loan amount
The Top-Up Loan allows you to obtain a high loan amount within the confines of the maximum loan amount provided by the lender.Enhances your credit score
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—Eligibility Criteria
To obtain a top-up loan on Personal Loan, you must fulfil the following eligibility criteria:
You should have an existing relationship and an outstanding Personal Loan with the lender.
You should have repaid all the EMIs of the existing loan on time.
You should have repaid a specific portion of your loan (typically 12 EMIs) before you apply for a Top-Up Loan.
You should be able to prove your loan repayment capacity.
You should have a decent credit score, preferably 750+.
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 at the time of obtaining the original loan sufficient.
How to Apply for a Top-Up Loan?
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 have to fill out an online form, mention the loan amount required, 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.
Apply for Top-Up Loans with HDFC Bank
As an existing HDFC Bank Personal Loan customer, you can effortlessly obtain a Top-Up Personal Loan. You can apply for Top-Up Loans by clicking here and get access to higher loan amounts. Enjoy a flexible repayment tenure, with attractive interest rates and budget-friendly EMIs on your collateral-free Top-Up Personal Loan.
Read more on how you can leverage on 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.