The need for funds is a regular occurrence in life as something or the other always pops up. Depending on your age, the expenses may vary. It could be your wedding or higher education expenses or a security deposit for your rented apartment. It could also be a medical emergency, an impromptu investment opportunity or a consolidation of existing debts.
Even if you are servicing a current personal loan, you may run into a sudden requirement for more funds. At such a time you may be better off trying for a top-up to your existing loan instead of going for a fresh new loan.
What is a top-up personal loan?
A top-up personal loan is an additional loan from the current lender at the same rate of interest. It is more convenient than scouting around for a fresh loan from a new lender. It saves time and energy for both the lender and the borrower.
When can you opt for a top-up personal loan?
When you are already servicing a personal loan and need some extra funds, you are better off asking your lender for a top-up loan. The probability is higher that the request will be sanctioned.
How can you improve your chances of getting a top-up loan?
Improve your credit score
As you may be aware, a credit score generated by a credit bureau is the first parameter on which loan applications are measured. The CIBIL score is a numerical summary of your credit history. It is a number ranging from 300-900. Usually, a score above 750 is considered good for personal loan approval. Paying off your debts on time is a good way of ensuring that you have a decent CIBIL score. This will stand you in good stead whenever you need funds.
Keep your debt exposure low
If you run up too many debts including credit card outstandings, it will show up in your bank statement. The lender may not be interested in giving you a top-up if he feels your total EMI will exceed 50% of your net monthly income.
Manage your monthly budget
Keep your monthly budget in control. Refrain from discretionary spending. This will boost your savings and help you manage your budget better. You can use this money towards reducing your credit card debts. This will make your bank statement look better and boost your chance of getting a top-up loan approved by the lender.
Apply for a reasonable amount
When you decide to apply for a top-up make sure you apply for a reasonable amount. You will stand a better chance of the loan getting approved. If you apply for a higher amount, it is possible that the lender may doubt your repayment capacity and decline the loan.
What else should you watch out for?
You can discuss with the lender to get the best terms possible. You can either get the top-up as an extension of the existing loan for the remaining tenure or you can get the top-up loan as a separate loan. It would be prudent to compare the interest outgo under both options and pick the lower one.
Can I choose a balance transfer option?
While looking for a top-up loan from the existing lender, you can explore the market and look for a balance transfer too. You can always check out a new lender with better rates. You can transfer the outstanding debt plus request for a top-up to create a brand new loan at better rates.
What do we offer at LoanTap?
We offer customised personal loans from Rs 50,000 – Rs 10,00,000 for a tenure of six months to five years. Our annual interest rates start at 18%.
If you are an Indian citizen or resident over the age of twenty one years with a net monthly income of over Rs 30000, you are eligible for a personal loan. All you need to do is to visit our website and fill up an online application. You will need to upload the following documents –
- PAN Card
- Aadhaar Card/Driving Licence/Passport
- Salary slip for last three months
- Bank statement of Salary account for the last six months
The application will be evaluated by the team. If the request meets the loan eligibility parameters, your loan will be approved and disbursed within twenty four to thirty six hours. You can choose the repayment plan as per your convenience. Once you service the loan for six months, you have the flexibility to repay the whole or part of the loan without incurring any penalty. We follow a transparent policy. There are no additional charges apart from what is mentioned on the website. So, what are you waiting for? If you are looking for a fresh personal loan or a top-up check out our website. You will find the tailored solution that you are looking for. Getting a Top up personal loan has never been easier. Do visit LoanTap for more details. We believe in creating customized solutions that suit the needs of individual borrowers, keeping in mind their unique needs and circumstances.