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What happens when you top up a loan?
A Top up loan meaning an extra loan is a financing option that is offered over and above the existing loan amount for products such as home loan and personal loan. The top-up loan is offered to customers who have an existing relationship with the lender, have a good credit score and have repayment ability.
Is top up personal loan a good idea?
“Due to the relatively lower interest rate structure and flexible loan tenure, top-up loans are a better alternative to a personal loan. A top-up loan can be taken for a maximum tenure of upto 30 years or the remaining period of your existing home loan, while a personal loan is offered for a maximum of five years.
What is the benefit of top up loan?
Low-Interest Rates – The major benefit of the top-up loan is that it can be availed at low-interest rates as compared to a personal or gold loan. The regular personal loan interest rates vary between 11-24\%, but for a top-up loan, the interest rates are the same as home loan interest rates.
Can we top up personal loan?
Available only on an existing personal loan: You can avail a top-up personal loan only if you have an existing personal loan. Attractive interest rates: Banks and financial institutions typically offer top-up loans at same interest rate as the originally approved personal loan.
How much personal loan can I get if my salary is 40000?
Multiplier Method
| Salary | Expected Personal Loan Amount |
|---|---|
| Rs. 20,000 | Rs. 5.40 lakhs |
| Rs. 30,000 | Rs. 8.10 lakhs |
| Rs. 40,000 | Rs. 10.80 lakhs |
| Rs. 50,000 | Rs. 13.50 lakhs |
Is it good to take top up loan?
Is a top-up loan better than a new personal loan?
The answer to whether a top-up loan is better than a new personal loan depends on your situation and requirement. Here are a few parameters which can help you make an informed choice: 1. Interest Rate: The interest rate of a top-up loan will be the same as that of the existing personal loan.
How to top-up your home loan?
To avail top-up loan customer has to re-pay the existing home loan for at least one year or as mentioned in the loan agreement. The lender provides home loan top-up only if the borrower has provided collateral for the same. Approximately 75\% of the loan amount is sanctioned over the provided property as collateral.
How long does it take to get a top up loan?
Banks which give personal loan to customers offer a top up to its customer after 9-18 months of the sanction date. If all of the above are okay with the bank they give Top up loan to the customer in max 2 days.
What is the maximum tenure of a top-up loan?
Flexible repayment tenure: Depending on the tenure of your existing loan, the tenure of your top-up loan can be anywhere between 12 months to 60 months. You won’t need to give any collateral: There is no need for these things in case of a top-up loan.