What is a Top Up Loan?

A top-up loan is an extra loan that a loan provider gives to a person who already has a loan with them, like a home loan or personal loan. Here are some key points about top-up loans:

• It is extra money you can borrow in addition to your existing loan amount.
• You typically need to have a current loan with the financial institution and pay it back on time to get approved.
• Top-up loans can be used for different things like home renovations, medical bills or other personal expenses. The loan provider usually does not restrict what you use the money for.
• Compared to personal loans, interest rates are usually lower on top-up loans.
• Repayment tenure is often aligned with your original loan period but can vary.
• Processing is faster because you already have a relationship with the lender. Less paperwork is required.
• It is a convenient way to borrow more money without applying for a completely new loan.