Top Up Loans Explained: All you Need to Know about these Loans
A good repayment history in a home loan always pays back in the best manner. You have a home loan ongoing, without any default or delay in the payment. You will get the best benefits and perks from your loan provider for sure. Though, it is a responsibility that a borrower pays the debt on time without any delay. Many do not take repayment seriously and often default. Therefore, to encourage more borrowers to be responsible with a good track record and debt repayment. It is nothing but a top-up loan. You can see a pre-approved top-up loan given in response to a clean track record of the existing loans.
When you pay your payment on time without delay, it often helps to get a clean track record of paying your credit eligibility increases. A clean track record of loan repayment is always one of the best ways to maintain credit eligibility and financial independence. Therefore, if you are repaying your loan on time without a single default. Then you will surely be getting back the benefits in the form of a top-up loan. If you have an existing home loan and you have paid all your installments on time till now. You need to know about a top-up loan because it can surprisingly come to you anytime soon.
What is a top-up loan?
A top-up loan is a flexible kind of loan is offered to a borrower with existing home loans in response to a clean track record. When the loan provider finds that a borrower is paying all the monthly installments within the due date and there is no single default, the institution offers a top-up loan to the borrower. It depends upon the borrower whether to accept or deny the top-up loan. This will be a completely pre-approved loan without any minimal documentation or approval process. Since it is in response to a good track record of loan repayment. There is no credit eligibility that the borrower needs to meet anymore.
The loan providers offer the advantage of getting a loan, that is flexible and instantly Disbursed within one to two hours. Yes, if the Borrower accepts the top of loan the amount is credited directly to the bank account within two hours. The amount credited will be completely flexible to be used for anything and everything. However, the borrower can also reject the request if he or she does not need any source of funds during that time. However, the request can be accepted anytime later when the borrower needs funds.
Benefits of top-up loans
- A top-up loan is already a pre-approved loan where the borrower does not need to meet any credit record or credit eligibility to get loan approval. The top of the loan is offered to the borrower in response to a good record and clean repayment history. Therefore, it’s already approved from the loan provider’s end. Since, it is a pre-approved loan the amount gets credited without any credit eligibility and approval waiting time.
- A top-up loan is always an extra source of funds that you can use for various kinds of needs. It is a flexible form of home loan that can be used, similarly to personal loan without any usage restriction. Top-up loans are meant for multi-purpose activities without stating the reason for the usage of taking the loan.
- A top-up loan is instantly dispersed within two hours. The loan amount gets credited to your bank account within two hours. Being a pre-approved loan there is no approval time taken by the loan provider that can delete the entire process.
- A top-up loan does not need any security or collateral because it is already a secured form. Since it’s given in response to a clean track record of the existing borrower there is minimal to no risk at all.
- A top-up loan is very affordable and interest is also low because the credit eligibility of the borrower is high. A pre-approved loan rate of interest is always affordable, which makes the entire loan cost affordable.
When you maintain a clean record in your home loans, you get a top of the loan in response to a fast loan. A top-up loan is indeed one of the best ways to attain a surprising source of funds to meet your emergency needs flexibly.