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. A top-up loan is treated as a personal loan and can be obtained to meet different purposes such as home furnishing, funding children's education expenses, or for meeting other emergency expenses. .

Benefits of a Top-up Loan

Quick and Easy Approval Process

As the lender already assessed the creditworthiness of the borrower, availing a top-up loan is quite easy and quick. Also, in most cases, you don't have to furnish extra documents for approval. However, if more than 2-3 years have passed, your lender may ask you to refurbish a few documents (like income proof, bank statements and address proof).

Attractive Interest Rates

Top-up loans are approved on the same terms and interest rate as that of the original loan. In some cases however, depending on your relationship with your lender, your eligibility, and your lender’s policy, the lender may even agree to a different interest rate or tenure, or may agree to waive off certain charges.

Longer Loan Tenure

The loan tenure of the top-up loan is based on the tenor of the original loan. For example, if taken against a home loan, the tenure can go up to 20 years or the balance loan tenure.