Before answering which is better between top up loan vs personal loan, let me first help you understand what they mean in brief. A top-up loan is an additional loan you can take on your existing loan, usually at a lower interest rate. On the other hand, a personal loan is a separate loan you take for various needs like home renovations or emergencies. It usually comes with higher interest rates than a top-up loan.
What are the Personal Loan vs Top Up Loan Differences?
The list of differences between personal loans and top up loan are as follows:
Personal Loan |
Top Up Loan |
You can use a personal loan for anything from vacations to emergencies. |
Top-up loans are meant for extra funds on top of an existing loan. |
Personal loans usually have higher interest rates. |
Top-up loan often comes with lower interest rates since it's an add-on. |
A personal loan requires fresh documentation and approval. |
Top-up loans are easier to get since it’s linked to an ongoing loan. |
Personal loans are based on your income and credit score. |
Top-up loans depend on the outstanding amount of your existing loan. |
So these are the major differences between the two so you can now decide which will be better to suit your needs.
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Which is Better Top Up Loan vs Personal Loan?
Shivam
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48 days
2024-09-30T16:03:47+00:00 2024-09-30T16:03:48+00:00Comment
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