What Are Personal and Top-Up Loans: What’s the Difference, Which Loan Is Better, What Are the Interest Rates, and What’s the Process to Apply?
Sometimes in life, situations arise when we suddenly need money — such as buying or building a house, paying for a child’s education, managing medical expenses, or arranging a wedding. When we don’t have enough savings to handle such expenses, we often turn to loans. In some cases, we may already have an existing loan. At such times, we usually have two options: a personal loan or a top-up loan . While a personal loan can be availed by anyone according to their needs, a top-up loan is only available to those who already have an existing loan. In today’s Your Money column, we’ll explore: What are personal and top-up loans? Which loan has a lower interest rate? What are the advantages and disadvantages of each? What’s the process to apply for these loans? Q: What is a personal loan and a top-up loan? Personal Loan: A personal loan is an unsecured loan , which means you don’t need to mortgage or pledge any assets to get it. Banks and NBFCs (Non-Banking Financial C...