What is the process for loan renewal or top-up?

When a business needs extra funds or wishes to extend the repayment period on an existing loan, it can approach the lender for a loan renewal or a top-up facility.

This option lets the business to either raise the approved loan amount or lengthen the repayment period, based on its current financial requirements.

To start, the business owner must submit a formal application for renewal or a top-up. This application should be supported by updated financial records—such as the latest bank statements, recent income tax returns, and a report on the company’s financial performance since the original loan was granted. The lender will go through these documents carefully to understand how the business has performed and whether it can handle additional debt.

If the lender is satisfied after reviewing all the information, they will propose new terms, which may include a revised loan amount, updated interest rate, and a fresh repayment schedule. The business must then agree to these terms before the additional funds are released or the loan tenure is extended.

Once the assessment is complete and the lender is satisfied, new loan terms are offered. These terms may include the revised loan amount, updated interest rate and a fresh repayment schedule. The borrower must review and accept these terms before the additional funds are disbursed or the tenure is extended. This approach gives businesses flexibility to manage cash flow and meet new financial requirements without starting the loan process from scratch.