All About Top Up Loan and its Importance

A top up loan refers to the additional money that individuals opt for on their existing credit. This is highly beneficial for borrowers in urgent need of extra funds, which increases its importance. 

Features and Importance of Top Up Loan

A top up loan has several features for which it has become a popular choice among loan seekers. However, at times borrowers have to pay additional charges while opting for top up loan. So they must weigh the pros and cons properly before opting for one. These are as follows:

1. Instant source of money 

Individuals need not have to make a separate loan application for a top up loan. This saves time during emergencies as there are high chances of instant loan approval and disbursal. 

2. No strict eligibility criteria

There are no such additional eligibility criteria for a top up loan approval. Hence, individuals can be sure about getting it. 

3. Not challenging to repay

The tenor of this credit type is generally longer. This gives adequate time to borrowers to repay their home loan with ease. 

4. Easily affordable fund source

A top up loan is usually more affordable as the interest rate on it is considerably low. Hence, you can meet your additional need for funds without much burden on the budget. 

5. No restriction on usage

Individuals can use this money in whichever way they want. This allows them to enjoy the freedom of fund usage without being answerable to anyone.