Two reasons exist for one to consider taking out a loan: proactive future planning and addressing unforeseen circumstances. However, in the face of your strategic foresight – what steps have you taken to prepare for emergencies? You need a personal top-up loan, so don’t worry.
As the name implies, this loan is specifically for personal top-ups. You take out a second loan, a “top-up” to your current loan. Even if you are taking out a new loan, it is linked to your current one. This is because applying for a new instant loan personal is typically difficult. Read on to know all there is about personal top-up loans.
What is Top Up Loan?
You can apply for a top-up loan if you need more money than your current loan. Purchasing and building a house may be a complicated process. There may be several expenses involved. You don’t always need to reapply for a loan if your final estimate turns out to be more than expected. You might apply for a top-up loan instant instead.
In this manner, the lender disburses more money under the same loan. Therefore, there’s no need to start again with the approval procedure. There is a quicker turnaround time, more liquidity, and freedom in using the money. The home loan top-up is an excellent choice because of its reasonable interest rate.
Who is Eligible?
Here, the sole need to take into account is that you have to have already taken out a loan. If so, you can apply for a personal top-up loan to your lender. The good news is that similar to a personal loan, you can utilise the money any way you see fit. Go immediately and apply for a fast personal loan if you are informed.
How Can I Get The Loan?
A personal loan is granted based on the borrower’s personal guarantee and repayment history. This applies much more to a top-up loan. You need a flawless repayment history and be ready for a few verification checks from the lender. Be prepared to respond to inquiries about your need for a top-up.
It all comes down to this. The lender will ask why you want a top-up loan, and you must respond compellingly. This does not imply that your reasons aren’t valid, but it helps to explain why you need it so quickly. It might be tied to paying an unforeseen business bill or remodelling your house. In any case, the most essential thing is to be honest about your reasoning and respond appropriately. Lenders have a knack for finding out the truth when applying for a loan instant.
What to Expect After You Have Availed of a Personal Top-Up Loan?
This aspect is just as significant as obtaining the instant loan personal itself. Here’s what to anticipate:
- Increased Costs: A personal top-up loan typically incurs higher personal loan interest rate than your original loan, with an additional 1%-2%.
- Loan Amount: You can secure a personal top-up loan of up to 70%-80% of the initial loan amount.
- Tax Advantages: Utilising the top-up loan for purchasing a house or home renovations offers potential tax benefits, making it a favourable option overall.
To Sum it up
A top-up loan is a fantastic approach to meet any additional financial demands. It is quick, hassle-free, and convenient. You may also utilise it to transfer balances. Overall, it is an excellent alternative for ensuring everything runs well without financial issues.
IDFC FIRST Bank provides top-up loans without processing costs if the loan repayment is made from an IDFC FIRST Bank account. Now that you understand what a top-up loan on a house loan is and the benefits it provides, you may apply for one.
