Top-up Loan or Personal Loan?
A personal loan can be utilized for multiple reasons. Regardless of the fact that you require the funds for paying the dues, clearing medical bills or any of the personal reasons, you can easily apply for a personal loan to avail finances conveniently. One plus point of availing an instant personal loan is that it is an unsecured loan. Thus the borrower is not required to pledge collateral to get the necessary funds. Nowadays, you can get access to funds in a shorter duration as such a verification process has become much quicker and hassle-free. If you require an urgent need for funding to deal with a financial emergency, the best option is to apply for an instant loan. However, you need to make sure you are eligible for a loan to make the most of its benefits.
What is a Personal Loan?
A personal loan is an unspecified amount a person borrows from a bank, or any other financial institution, to meet a personal need/requirement. A personal loan can be used to finance anything from home renovations and European vacations to your child’s education and even unexpected medical expenses. Personal loans are also quite useful when it comes to investing in businesses, fixing your car, making a down payment for a new home, etc. Interest rates can range depending on your credit history, tenure, income, occupation etc. The rates are fixed and not floating rate.
What’s a Top-Up Loan?
Banks and other financial institutions provide a top-up loan facility by doing that the loan borrower is allowed to lend a certain amount of money this is then added over and above your current personal loan, or a home loan or any other such loan. Anyone with an existing Home Loan, Gold Loan or a Personal loan can avail a Top Up Loan. Tax deduction benefits are also available on a top-up loan for the interest portion under section 24. Most banks and financial institutions offer top-up loans readily to their existing customers.
To avail a loan, you need to be eligible for the same. It would be best if you met the essential loan eligibility criteria for an instant personal loan.
- You need to be an Indian citizen to be eligible for the loan.
- It would help if you were a salaried individual to be able to provide proof of your credit.
- The applicant must be between the ages of 23-58 years to apply for a loan.
- A good CIBIL Score will showcase your financial ability to repay the loan amount.
- There should be no outstanding amount on your credit card or other existing loans.
Top Up Loan
Lenders will allow such a loan only if you have already taken a loan earlier and have been steadily paying back the loan amount, at least over one year or as mentioned in the document. The repayment track record of your loan is one of the most important factors considered by the lender. This will determine whether you are eligible for a personal loan top-up loan.
These loans are meant primarily for those individuals who require extra money for constructing the property. Secondly, the rate of interest charged on top-up loans is significantly less compared to personal loans. The personal loan funds can be used for various purposes like a medical emergency, financing higher education, holiday trips, wedding expenses, business expansion, consolidating debts and many more. However, you need to make sure you apply for a loan at a reliable bank or financial institution. Online banks and lending institutions have their personal loan app with which anyone can apply for a loan online on their phone.
With the Finserv MARKETS app, you can avail a personal loan for all kinds of financial needs at attractive rates of interest. Whether you want to plan your travel, purchase a home, or finance your wedding expenses. The entire loan application process is carried out online through the website or the Finserv MARKETS app and requires minimal documentation. You also get personalized pre-approved offers, instant approvals and flexible tenures of 12 to 60 months on your loan. Once your loan gets approved, you can have your loan amount disbursed within 24 hours.