What is Personal Loan?
A Personal Loan is one that is granted for personal use, which is unsecured and totally based on the borrowers integrity. It can be easily obtained for any purpose. Getting a personal loan is much easier if the person has high income, substantial collateral and good credit score.
What is Personal Loan Top-Up?
Personal Loan Top Up is an additional loan which is taken by the borrower on the existing loan given by the lender. The Top-Up amount is decided based on the current loan income and repayment track. Top-Up loan availed for different requirements is based on value of the property. Customer can get additional funds against the security of the same property. A period of 6 months is required for the loan to be sanctioned.
Personal Loan Top-Up can be availed for:
- Consumer durable.
- Family holiday.
- Child education.
- The product is applicable only for fully disbursed cases with no disbursement document pending
- The interest rates are priced lower than any personal loan rates.
- Salaried or Self employed professional can easily avail this loan.
- The person can take this loan after 1 or 2 years after the final disbursement of the existing loan.
How does it work?
The logic behind a personal loan top up is that person has already started to pay off their loan amount; hence the bank will reduce the loan amount with each monthly payment. A top up loan helps the person to obtain a loan that is urgently required to fulfill their personal needs.
Key Features of Personal Loan Top-Up
- Person can avail a personal loan top-up only to existing loan.
- The term period of personal loan top-up is 10 to 20 years depending on the existing loan term.
- Bank can offer a top-up loan amount as a maximum of Rs 10lac because the top-up amount depends upon the balance of the existing loan.
- Borrowers can also get a tax benefit on the top-up loan money. The tax rebated from top-up loan is comprehensive of the tax return on current personal loan.
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