Personal loan Top up

What is a Personal Loan Top up?

A top-up loan is a facility provided by the lenders to its existing loan account holders. This facility helps borrowers to get an immediate funding over and above their existing loans to fulfil additional financial requirements.

Personal Loan top up can be used to -

• Meet immediate fund requirements for personal expenses like weddings, education, home renovation, medical needs etc.
• Consolidate your existing debts
• Meet business expenses

Features of a Top up Loan

Zero Collateral
Most lenders do not require the top-up loan applicants to provide any security or a collateral against the amount they borrow. This not only makes it easy to avail the loan, but also considerably reduces the time taken to process the application and disburse the funds.

Affordable Interest Rates
One of the most important things people look for while applying for any type of loan is the interest rate. Most lenders in India offer attractive top up loan interest rate as compared to other unsecured loan. This is also one of the major reasons why several people opt for a top-up loan as it helps them manage their repayment easily.

Quick Approval
Since the lenders already have a relationship with the top-up loan applicants, the process of approval is quicker. Also, the disbursement of the amount is faster as the lender is aware of the credentials of the applicant.

Long Repayment Tenure
While availing of a personal loan top up, the loan repayment tenure may be negotiated with the lender based on the top-up amount, repayment capacity, and outstanding balance of the personal loan.

No or Minimal Documentation
Since the lender already has your documents, the loan processing and its disbursal is instant with zero to minimal documentation.

How to Apply for a Personal Loan Top Up
Before applying for a personal loan top up, do verify if your existing personal loan lender is offering a top up facility to it. In case your existing lender does not offer a top up loan, you can shift an active loan from your present lender to another through a balance transfer. After the balance transfer, you can apply for a top up loan from your new lender. Also, keep the relevant documents required to apply a top-up handy while you check your top up eligibility with your lender. You can be sure of fulfilling the eligibility criteria to avail a personal loan top-up with a good repayment record and solid credit history.

Here are the documents needed to apply for a personal loan top up:

• Identity Proof such as Aadhaar/PAN/Driving licence/Passport
• Address Proof such as Aadhaar/Driving licence/Passport/Utility bills/Rental agreement
• Last three month’s salary statements, for salaried applicants
• Income details in bank statement for three months

With the above documents in hand, you can approach your lender and apply for a personal loan top up easily. At HDB Financial Services, you can now apply for a personal loan through their online and offline channels, and even avail of a top-up over it to meet any unforeseen financial needs. The application process is hassle-free with minimal documentation with instant processing and disbursal of the loan amount.