According to an economic survey, the Indian personal loan sector is expected to grow at a pace of 10% between 2020 and 2025. In order to get rid of the liquidity crisis, a personal loan comes as an immediate solution because of its several benefits and convenient features. Considering the economic downturn, financial lenders have come up with more financing options like a personal top-up loan that involves minimal paperwork and a smooth application process.
However, individuals often struggle with finding adequate information before availing these loans. In order to help them out, here is a brief overview of top-up loans and some necessary aspects individuals should go through.
What is a top-up loan?
It is merely a type of personal loan that allows the borrower to obtain additional funds on an existing loan. Individuals are free from going through the documentation process to avail this since they have already met the personal loan eligibility criteria before.
Nevertheless, it is necessary to have sufficient knowledge about the verification process of your personal loan in order to avoid inconvenience.
Key features of personal top-up loan
Individuals having an ongoing loan facility can easily opt for this financing option during a monetary crisis. Here are a few unique features you can get with this low-interest personal loan.
- Top financial institutions and NBFCs make sure that borrowers do not struggle to handle monthly instalments. Therefore, the interest rate remains the same as your existing personal loan to prevent them from additional liabilities.
- Individuals also get to choose from a repayment period ranging up to 60 months, depending upon the outstanding amount of the ongoing loan.
- This collateral-free personal loan comes with no end-use restrictions. Therefore, borrowers have the freedom to use the money to meet all kinds of financial needs.
- Unlike other traditional loans, the disbursal process of this personal top-up loan is relatively faster as all the necessary information is already there with the lender.
Apart from these, one must also know how CIBIL score is important for personal lending as that is one of the essential parameters lenders check before sanctioning the loan.
Ways to find information about top-up loan
Even though availing this personal loan without documents is pretty easy, borrowers still need to have enough information to utilise its benefits properly. Following are some ways you can do this:
- Go through the website and provide details regarding your active personal loan.
- Check eligibility and apply accordingly either by using the online portal or offline method.
Individuals can quickly obtain a top-up loan to avoid the inconveniences of a traditional personal loan, like high-interest rates and stringent eligibility criteria.
An NBFC like Bajaj Finserv further makes availing personal loans easier with pre-approved offers for all existing customers. These offers are available on several financial products like personal loans, business loans, etc. You can quickly check your pre-approved offer by submitting your name and contact number.
Even though the loan amount depends on the lending institution, you can expect to receive a substantial credit to help yourself during a financial crunch. All it requires is a decent credit score and clean payment track record to opt for a personal top-up loan.
