Loan Top-up: Do not make the mistake of taking 2-3 loans from the bank, do this and you will get the money immediately...
Nowadays, loans are being taken for everything from building a house to buying a car. Low loan rates and increasing income of people have made it easier to take loans. There are many types of loans. Home loans, car loans, and personal loans are some examples.
Many times you take a loan for some purpose and then you need more money. In such a situation, the first thought that will come to your mind is to take another loan. You can do this also but there is no need for it. You can top up your loan like any phone recharge.
In Loan Top-up, you are given your already existing loan and credit. Most of the lenders also provide you with this loan at the same rate at which you got the first loan. You might be wondering what would be the benefit of getting a loan top-up instead of taking a new loan. Let us know some of its benefits.
Reduce debt burden
By doing a loan top-up, you do not have to face the headache of two separate loans. Loan top-up helps you consolidate all your loans in one place. Apart from this, your interest rate also becomes slightly lower in comparison to other loans.
Document
One of its biggest advantages is that you do not have to complete the entire paperwork again which you had done earlier for the loan. This is because your financial institution already knows you and has your documents. You just have to fulfill a few conditions and your loan top-up is approved.
Other benefits
The interest rate in top-up loans is lower than many other loans. You do not have to pledge any collateral for this. This loan gets approved very quickly. If the home loan has been topped up, then obviously you get a much longer repayment tenure as compared to a personal loan. Also, if you have taken a loan from any one bank and it does not giving you the facility of top-up, then you can transfer your balance loan to another bank.
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