Personal Loan Top-Up: Check Bank Eligibility and Apply

Personal loans are helpful when you need to address an upcoming expense without dipping into your savings. Similarly, a top-up personal loan is the credit granted to you on top of the original loan amount. With popular options like the Axis Bank personal loan top-up, this tool has emerged as a viable alternative to address unplanned expenses.

But what exactly does a top-up loan constitute? What makes you eligible to receive it? Find the answers to these questions and more in this blog.

Essentials of a Top-up Personal Loan

A top-up personal loan falls under an unsecured personal loan, where you don't require collateral to repay the loan amount. The only difference is that these loans are granted during the repayment period of your original amount. You can use this credit to manage personal expenses, such as your child’s education, marriage, or travel costs.

Plus, it is easier to secure a top-up loan if you have a strong record with the bank. If you have verified your credit score and paid all your EMIs within the designated deadline, chances are that the lender will be more inclined to approve your top-up loan request.

That said, there are multiple prerequisites to avail of a top-up loan.

Eligibility to Get a Top-up Personal Loan

Every lender does not provide a personal top-up loan. The first requirement is an existing relationship and outstanding personal loan with the credit provider.

Additionally, there are several top-up loan eligibility criteria to decide the creditworthiness of the borrower, such as:

• Regular EMI payments of the existing loan amount
• The lender must have paid a part of their outstanding loan before applying for a top-up
• Proof of loan repayment capacity
• A strong credit score to prove that you have the means to repay the loan on time

Some lenders may require documentation, especially if you took the original loan a few years back. Documents like your ID proof, address proof and income proof are standard prerequisites to get started.

Apply for a Top-up Personal Loan in a Few Steps

You can choose one of two methods to avail of a top-up personal loan from the lender.

• You can ask about the structure of the top-up loan at your nearby branch or browse through the bank website to check the arrangements
• If your existing bank does not provide a top-up, you can choose to shift the loan amount to another credit provider through a balance transfer and use their top-up facilities to secure additional credit

Here are some of the banks that offer a top-up personal loan, along with their rate of interest:

Conclusion

In conclusion, a top-up personal loan is a convenient option to address unplanned expenses without tapping into your savings. Meeting eligibility criteria and maintaining a good credit record increase your chances of approval. Different lenders have varying requirements, and exploring all the available options in the market is important.

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Frequently Asked Questions

1. How Do I Request A Top-Up Loan?

You can contact your loan provider to check your eligibility for a top-up loan. Typically, top-up loans are provided after you’ve repaid a certain amount of the original loan and paid your EMIs in time.

2. When Can I Apply For A Top-Up Personal Loan?

Most loan providers allow you to request a top-up personal loan after an estimated 12 months from the start of your repayment date.