A Top-Up Loan allows you to borrow additional funds on your existing home loan or personal loan, without the need to apply for a new loan altogether. This option is ideal for individuals looking to finance big-ticket expenses like home renovations, medical emergencies, or education fees. Top-up loans offer lower interest rates compared to personal loans, making them a cost-effective solution. Since the loan is based on your existing loan's repayment history and property value (for home loans), it’s quicker to process and comes with fewer formalities. Get the extra funds you need without any hassle, while continuing with your existing loan’s terms.
Criteria | Details |
---|---|
Income Requirement | ₹25,000/month minimum income |
Existing Loan Type | Must have an existing home loan or personal loan |
Credit Score | 700+ preferred for better rates |
Age | 21 to 65 years |
Loan-to-Value Ratio | Dependent on the existing loan’s value and repayment history |
Feature | Top-Up Loan | Personal Loan |
---|---|---|
Interest Rate | Lower (8-12% p.a.) | Higher (12-24% p.a.) |
Approval Time | Quick (within 2-5 business days) | Moderate (1-2 weeks) |
Loan Amount | Based on remaining loan balance | Fixed amount determined by the lender |
Repayment Terms | Flexible, based on existing loan terms | Fixed EMI with a defined tenure |
Collateral | No new collateral required (if already secured) | Not required (unsecured) |
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