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Interest Rates for Top Up Car Loan
Top-up loan interest rates can vary widely across lenders. They would also vary depending on the various aspects of applicant’s credit profile such as his/her credit score, the quantum of loan sanctioned, loan tenure, nature of employment, etc. Usually, the top-up personal loan interest rate is the same as your existing/outstanding personal loan interest rate.
Top Up Car Loan
Top-up personal loans are offered to existing personal loan borrowers by their existing lenders to avail additional loan amounts over and above their outstanding personal loan amount. This loan amount is usually offered to the select existing personal loan borrowers having satisfactory loan repayment history and having completed a specified number of EMIs. Similar to a personal loan, a top-up personal loan can be used for various personal purposes, such as for meeting wedding expenses, vacation expenses, medical and hospitalisation expenses, home renovation, and much more.
Features of Top-up Loan
- You can avail a top-up personal loan only if you have an existing personal loan.
- In the case of most lenders, borrowers are not required to provide any security or collateral to avail a top-up personal loan. They may not need a guarantor either.
- Banks and financial institutions typically offer top-up loans at same interest rate as the originally approved personal loan. The final top-up personal loan interest rates offered to applicants would vary depending on their credit profile.
- The maximum loan amount offered under the top-up loan category varies from one lender to another. However, the quantum of top-up loans would not exceed the overall loan amount eligibility of the borrower after factoring his outstanding personal loan amount.
Loan Amount of Top Up Car Loan
The borrower can apply for a top-up loan, which is an additional amount on top of the existing loan. The top-up loan amount is usually capped based on factors such as the outstanding loan amount, the borrower's income, and the lender's policies.Documents Required for Top up Car Loan
- Employee ID Card.
- Aadhaar card, PAN card, passport or voter ID card.
- Salary slips.
- Bank account statement.
What is the Maximum Tenure for a Top-Up Loan?
There is no specified tenure for a top-up loan. It depends on the borrower’s profile, repayment history, etc. Often, a top-up loan can be sanctioned for a longer tenure than the tenure remaining for the existing personal loan. However, the tenure of the top-up loan cannot be longer than the outstanding tenure of the original loan. Those wishing to get longer loan tenures can exercise personal loan balance transfer option.
