Top up of Your Personal Loan has multiple benefits. It gives you an extra advantage of cash in hand, lower interest rate, longer loan tenure, lower EMI and similar others. We have discussed in detail about how you may also avail the benefits of the top-up of your personal loan.
Personal Loan is a loan of a common man. Very simple and easy for us to get it. Borrowing a personal loan is the best option during the cash crunch. So, if you have taken any personal loan and want to top up it then this is the right decision.
Benefits of Top Up Of Your Personal Loan:
- Very Few Documents Required– When you apply for the top-up then the list of documents required by the lender is very less. They simply ask you to submit your bank statement and KYC. As per your loan limit eligibility cap, you will get the loan amount approval within 1-2 days.
- No Verification-As it is top up of your existing loan with the same lender which has already verified all your details earlier so no physical verification is done.
- Fast Approval Process- Approval and disbursal of fresh personal loan takes 14-15 days at an average. But the top-up of personal loan is processed in 1-2 days only.
- No Collateral Requirement- The top up of your personal loan is done without taking any collateral for safekeeping as security.
- No spending Restriction- What you do with your personal loan tp up amount is none of the business to the bank or lender. You are free to spend it anyway you want.
- Tax Benefits – If you availed your personal loan for the purpose of purchase of property, repair etc then you on the top up loan amount also you can claim tax benefits under section 24 of IT Laws.
- Maintain Single EMI When you top up the personal loan then previous loan is closed and fresh loan with bigger EMI or Duration as per the loan repayment schedule is fixed. You pay only one EMI. The tension to maintain multiple EMI is not there.
- Processing Charge is paid only on the top-up amount- The processing fee is paid only on the additional amount taken as loan. There is no charge on previous amount.
However, there are disadvantages also in the Top-Up of Personal Loan. We have listed them also to make a balance. Here are some of the disadvantages you should consider.
- Only existing personal loan customer may avail this facility
- Small Amount of loan is given against top up
Considering all the facts discussed above we may come to conclusion that it is always beneficial to top up your existing personal loan rather than taking a fresh loan. Keep visiting Loan Guru for latest updates on all types of your loan requirements.