Key distinctions between top-up and Personal loans

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Key distinctions between top-up and personal loans
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What does a top-up loan mean?

• It is the additional funds that you can borrow on
  top of your existing loan.

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Understanding the working of top-up loan

• Borrowed funds must be repaid within the terms of
  the ongoing debt.
• This loan is only available if your existing debt
  EMIs are paid on time.

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Characteristics of a top-up loan

• Top-up loan EMIs are added to your existing debt.
• It requires minimal or no documents.
• You can get tax benefits in certain conditions.

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What does a personal loan mean?

• They are unsecured.
• Funds are approved after a review of your monthly
  salary and repayment history.

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Understanding the working of a top-up loan

• A good credit profile qualifies you for a loan
  with favourable terms.
• The lender reviews your debt-to-income ratio,
  salary, and employer's credibility before
  approval. 

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Characteristics of a personal loan

• You can select your tenure based on your
  financial situation.
• You can receive funding of up to Rs 5,00,000.
• The lender never asks for collateral.

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Top-up vs personal loan Which is better?

• A top-up loan is only available if you have
  ongoing debt.
• Top loans have less disbursement time and a lower
  interest rate. 

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Top-up and a personal loan both can help you in
times of financial emergency. However, the former
can only be used if you have an outstanding loan.
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al-loan-vs-top-up-loan