personal loan
Summary: Learn how to deal with uncertainty about your future with the help of traditional personal loans. Here’s how you can get more from your loan:
Personal loans are a great way to get additional funds for a variety of needs, from luxury purchases to home renovations. However, even though you have prepared for these expenses, emergencies often arise that require you to immediately raise funds and pay the costs in advance. Don’t they surprise you? Don’t worry. In this situation, a personal loan top-up can help.
What is the process of increasing a personal loan?
So what is a personal loan top up? This is the additional loan amount provided by the bank to the borrower above the initial loan amount disbursed. If after applying for a personal loan, you realize that later you need more funds, you can top up your personal loan to prepare additional funds. Applying for a top-up is very easy as all the documents you submit when applying for a traditional personal loan are already with the bank. This makes it easier for you to choose a top-up rather than applying for a completely new loan, which would require you to go through the entire loan process again.
Who is eligible?
The only criteria to consider here is that you must have taken a loan. In this case, you are free to apply for additional personal loans from lenders. The good news is, just like a personal loan, the funds are free to use at your discretion. If you know this, please get a personal loan right now.
How can I get a loan?
Personal loans are made based on personal guarantees and payment history. This goes double for additional loans. You should have an excellent payment history (read: ideally) and be prepared for the lender to do some checks. This can also answer the question of why you need the fees.
Why all these questions?
Everything revolves around this. Lenders will ask why you want to take out additional loans, and you will need to provide a convincing answer. This doesn’t mean the reason isn’t correct, but it’s good if you have an explanation of why this reason is really needed. This could be anything from an unexpected expense coming up or meeting a new need that has arisen in your life. Whatever the choice, the most important thing is to explain the reasons honestly and provide an appropriate response. Lenders have a sense of truth.
What happens after I take out an additional personal loan?
This is as important as the benefits of the loan itself. Here’s what you can expect:
- It may cost more. If you add a personal loan, you will be charged more interest than your previous loan (calculated separately). Expect to pay an additional 1-2%. Loan amount: Additional personal loans are available up to 70-80% of the initial loan amount. Tax Benefits: Yes, that’s right. However, this only applies if you use the additional loan to buy a home or make improvements to your home. Overall, it’s still good.
- It may cost more. Additional personal loans will be more expensive in terms of interest than previous loans (calculated separately). Expect to pay an additional 1-2%.
- Loan amount: Additional personal loans are available up to 70-80% of the initial loan amount.
- Tax Benefits: Yes, that’s right. However, this only applies if you use the additional loan to buy a home or make improvements to your home. Overall, it’s still good.
Firstmoney: a better alternative to top up your personal loan balance
There may be a possibility of your personal loan increasing due to poor spending plans or emergency situations. Instead of answering all kinds of questions from lenders, apply for a smarter personal loan like FIRSTmoney from IDFC FIRST Bank. Here’s why:
1. Credit Limit: FIRSTmoney offers an approved credit limit of up to 10 lakhs for 5 years subject to clean payment history. This gives you the freedom to earn extra money whenever you need it. This is a no-questions-asked withdrawal method within permitted limits.
2. No Foreclosure Fees: With no foreclosure fees, these loans are one of the most customer-friendly personal loan options that allow you to pay back the loan when you have the funds.
3. Withdraw as much funds as you need: FIRSTmoney allows you to withdraw as much funds as you need, up to an agreed limit of at least INR 5,000, as much as you want, with no limit on the withdrawal amount.
4. Pay EMI only on the amount drawn: Unlike loans with a credit limit, EMI is paid only on the amount drawn, and there is no management fee on the amount sanctioned. This makes FIRSTmoney an excellent alternative for raising funds to cover your expenses.
5. Easy Digital Application Process: Thanks to FIRSTmoney, you can skip the lengthy process of applying and topping up a personal loan. You simply withdraw the required funds from your FIRSTmoney loan, which only applies to your PAN card and a few details. This makes applying for a FIRSTmoney loan more efficient compared to direct personal loans or additional loans.
6. Instant Approval: Don’t wait any longer. The fully digital app allows you to get instant approval for amounts up to INR 10 lakh, depending on your credit worthiness. To apply for a FIRSTmoney loan, all you need is a stable income, a physical PAN card during the VKYC period, and a credit score of 750+.
conclusion
Personal loan top-ups can be a useful tool in maximizing your personal loan. However, it is important to assess your situation carefully and use them wisely. If you are thinking about increasing your personal loan, FIRSTmoney may be a more convenient and useful tool for you. Benefits such as no repossession charges, ability to withdraw only as much as required and EMI limits on the amount spent provide significant advantages over additional loans.
disclaimer
The contents of this article/infographic/image/video are for informational purposes only. The content is general and for informational purposes only. It is not a substitute for specific advice regarding your particular circumstances. Information may be updated, finalized, reviewed, verified, corrected, and may be materially changed. This information is not intended for distribution or use by anyone in any jurisdiction where such distribution or use would be contrary to law or regulation or which would subject IDFC FIRST BANK or its affiliates to any licensing or registration requirements. IDFC FIRST BANK is not responsible for any direct or indirect loss or liability incurred by readers due to making financial decisions based on the content and information mentioned. Consult a financial advisor before making any financial decisions.
The features, benefits and offers mentioned in the article are valid as of the date this blog was published and are subject to change without notice. The contents of this document are subject to other product-specific terms and conditions and third party terms and conditions, as applicable. Please refer to our website www.idfcfirstbank.com for the latest information.
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