Top-up Loan or Personal Loan?
A personal loan can be utilized for multiple reasons. Regardless of whether you require the funds for paying the dues, clearing medical bills, or any personal reasons, you can easily apply for a personal loan to avail yourself of finances conveniently. One plus point of availing of an instant 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 maximize 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 unique 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 helpful in 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 rates.
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, a home loan, or any other such loan. Anyone with an existing Home Loan, Gold Loan, or Personal loan can avail of a Top-Up Loan. Tax deduction benefits are also available on a for the interest portion under section 24. Most banks and financial institutions offer top-up loans readily to their existing customers.
- 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.
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 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. 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 reliable bank or financial institution loan. Online banks and lending institutions have their loan app to apply for a loan online on their phone.
With the Finserv MARKETS app, you can avail yourself of a personal loan for all kinds of financial needs at attractive interest rates. 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 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.