A Top-up personal loan is a Top-up amount that you can borrow from a personal loan that is available after completing a certain amount of EMI payments. Similar to personal loans, personal loans also have limited use flexibility for a variety of personal purposes such as wedding expenses, holiday expenses, medical emergencies, home repairs, and more.
How to apply for a higher loan
You can apply for an SBI Personal Loan Top Up in any of the following ways provided below:
If you have a valid mortgage and if your lender allows you to obtain a loan, you can check your eligibility and apply for it through the lender's website or by visiting your nearest branch office.
If your lender does not provide Top loans, you can transfer your loan to the new lender by transferring the balance and applying for a Top-up loan to the new borrower. You can also opt for a balance transfer if a new lender offers a better interest rate or a longer-term repayment loan.
Top- Up Loan Benefits:
Most people who are already on loan tend to consider applying for Top-up loans instead of going for a separate loan to meet their new / Top-up financial needs. Some of the major benefits of Top-up loans are discussed here.
Reduce Interest Loans: Borrowers can choose to get a higher interest rate on their existing loans and use them to repay high-interest rates such as credit card payments. This can help them reduce their debt burden and consolidate their debts to facilitate easy payments.
Minority: There is usually no Top-up paperwork required to apply for Top-up loans in the event of a majority of lenders. This is because the borrower has an existing relationship with the borrower and the borrower also knows about the credit history and repayment of the loan. However, this document requirement may vary from lender to lender.
Quick Process: Since the borrower and the lender have an existing relationship due to the original loan, the lender considers the loan application to be added faster than the personal loan. Loan payments, therefore, are also fast. This can help the borrower to obtain financial access to the lender more quickly and use that money to meet his immediate financial needs.
Attractive Interest Rate: Most lenders offer Top-up loans at the same interest rate as the personal loan. This is one of the main reasons why borrowers choose to borrow money once they have an existing loan.
No Security / Cooperation Required: In the case of the majority of lenders, borrowers are not required to provide any security or collateral to obtain personal loans. They may not need confirmation either. This can significantly reduce the time taken to apply for Top-up loans compared to the new loan application.
Consolidated EMI: Many banks and financial institutions that offer savings loans allow borrowers to repay their initial loans and Top-up loans using an integrated monthly installment (EMI). This can reduce the burden of making different payments every month. It will also reduce the chances of losing EMI payments that could affect your credit score.
Long-term Rent: If you get a loan to advance, the term depends on the balance, your repayment ability, and the amount of the loan you have requested. The term of the loan may be longer than that of the outstanding personal loan, which is why many people prefer to borrow more. However, the term of the Top-up loan cannot exceed the term of the original loan.
Balance Transfer Available: Some lenders offer Top-up loans for the rest of the loan. If you have already used home or personal loan from a lender but the lender does not offer Top-up loans, you can transfer your money to another lender. This can help you to cope with your new financial needs easily.
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