2 weeks Ago By Moneycontrol
A personal loan is one of the most commonly used financial services worldwide. It helps people cover major expenses or unexpected costs. Before applying, borrowers can check their eligibility for the amount they can borrow.
Sometimes, the initial loan may not be enough and they might need more funds later. In such cases, lenders offer a personal loan top-up, which allows borrowers to increase their loan amount even after the original loan has been approved and disbursed. This top-up option provides extra funds without the need to apply for a completely new loan, making it a convenient solution for financial needs.
What is a personal loan top-up? A top-up allows individuals to borrow an additional amount over their existing personal loan. It provides extra funds beyond the original loan without needing a fresh application. This option is useful for those who require more money to meet financial needs after their initial loan has been disbursed.
The loan operates similarly to a standard personal loan. The borrower is free to use the money for any purpose without having to pledge any collateral or limit how the money is used. The current loan and the top-up loan amount are combined and your EMIs are recalculated using the revised loan amount and term.
For example, one would be eligible for a Rs 2 lakh top-up loan if they initially took out a Rs 5 lakh personal loan and have paid back Rs 3 lakh of the principal. This could restore the total credit limit to the initial Rs 5 lakh amount, subject to clearance. You can explore multiple personal loan offers on digital lending platforms like the Moneycontrol app and website.
The personal loans start at as low as 10.5% per annum and a completely paperless application process can lead to seamless approval and disbursement of the amount to your bank account. Moneycontrol has partnered with eight lenders to offer personal loans up to Rs 50 lakhs .
How to increase your personal loan amount after approval? The majority of financial institutions allow customers to increase the amount of their personal loan after it has been initially approved, subject to specific terms and conditions. Examine current loan agreement Find out if the loan provider allows customers to increase the loan amount by reviewing the terms of the personal loan. Check for any special instructions regarding requesting a larger sum as well.
Determine eligibility Lenders will reevaluate the eligibility in order to approve a larger amount. Factors like income, current debts, credit score and loan payback history are considered for approving personal loan amount increase request letters. Submit personal loan amount increase request Individuals should get in touch with their financial institution to increase the loan amount and submit the loan amount increase request letter.
This might require a processing fee. One should provide documentation to back up their request for a larger sum. Obtain credit approval After examining the application, the lender will let customers know if they qualify for a larger sum.
There are situations in which the tenure and interest rate may alter. Sign revised agreement If granted, one might have to close their current loan and sign a new one that includes the changed loan amount, EMIs, interest rate, fees, and other details. Processing fee payment One might have to pay an administrative or processing fee to a financial institution in order to increase the amount of the personal loan.
Receive top-up loan payout The extra authorised financing amount will be credited to the account by the loan provider. The entire updated loan amount will be subject to the repayment terms. A top-up loan does not have a specific amount limit.
It depends upon the borrower’s repayment history, profile and other factors. The top-up personal loan’s term cannot exceed the initial loan’s remaining term. The option to transfer the balance of a personal loan is available to those who want longer loan terms.
Get Instant Loan Up To Rs.50L Conclusion In conclusion, a top-up is a convenient way to access additional funds on an existing personal loan without the hassle of a new application. It helps borrowers manage unexpected expenses or larger financial needs with ease.
Through Moneycontrol’s online lending platform, you can explore personal loan offers of up to Rs 50 lakhs from eight lenders, with interest rates starting at 10.5% per annum. The entire application process is 100% digital.
.
