Is it a good idea to take a top up loan?

“Due to the relatively lower interest rate structure and flexible loan tenure, top-up loans are a better alternative to a personal loan. A top-up loan can be taken for a maximum tenure of upto 30 years or the remaining period of your existing home loan, while a personal loan is offered for a maximum of five years.

What is a loan top up?

A home loan top-up is a way of increasing your loan amount so you can borrow some extra money. If you’ve been paying off your home loan and building equity in your home, then your lender may lend you extra money. A home loan top-up often works out cheaper than using a personal loan or a car loan.

How is top up loan calculated?

Banks will calculate the top-up loan amount, after taking into account the Equated Monthly Instalment (EMI) of your running home loan. The bank will estimate the Fixed-Obligation-to-Income ratio (FOIR) for your top-up loan, after deducting the instalments of all your running obligations.

How many times can you top up a loan?

Yes, you can apply for a top up loan at any time; you don’t have to repay one loan before applying for another.

Is top up personal loan is good or bad?

A top-up loan should not be taken just because it is simply available. It becomes fruitful only when you have the requirement for finance. Because a top-up personal loan could be costly, and you might end up paying additional interest on the repayment.

How often can you top up a loan?

Yes, you can apply for a top up loan at any time; you don’t have to repay one loan before applying for another. If your new loan is based on a different interest rate, our system is enabled to run two or more loans on the same account at the same time.

What does top up mean in banking?

to add money to (a loan, bank account, etc) in order to keep it at a constant or acceptable level.

Can we top up personal loan?

Available only on an existing personal loan: You can avail a top-up personal loan only if you have an existing personal loan. Attractive interest rates: Banks and financial institutions typically offer top-up loans at same interest rate as the originally approved personal loan.

Can I top up my personal loan?

You can avail a top-up personal loan only if you have an outstanding personal loan (existing relationship) with the lender. A top-up loan can be availed only after a certain stipulated time has passed- after you have repaid a certain portion of your loan.

How long do you have to wait to apply for another loan?

So, how long should you wait between applications for loans or credit cards? The general consensus amongfinancial professionals is that a minimum of six months of time should pass between applications. This gives the first inquiry time to fade away into the recesses of your credit report.