Money View Top-Up loan

Money View, being one of the most sought-after private finance companies in India, offers top-up loans at attractive rates of interest. In order to be eligible for Money View Top up loan, you need to have an existing loan account with Money View. The primary document required to apply for a Money View top-up loan is the Aadhaar Card. Money View shall also access your Cibil score to consider your top-up loan eligibility.

Top-Up loan VS Personal loan

Although the amount received as a top-up loan can be used for meeting personal requirements, there are differences between a top-up and a personal loan. Besides, a top-up loan comes with some added advantages compared to a fresh personal loan. Listed below are some of the key differences between both -

Top-Up loan Personal loan
Comparatively Low-interest rates The interest rate is high compared to a top-up loan
Get it for a maximum tenure of 20 years The highest tenure of a personal loan is usually 5 years. However, the tenure may be extended upon request
Tax benefits available No tax benefits
Minimal documentation or no documentation Complete documentation required.
A top-up loan is secured against the home loan or property against which the loan is taken It’s an unsecured debt.

What is a Top-up loan?

A top-up loan is a type of facility offered by banks or other financial institutions that allow you to borrow an additional amount over and above your existing loan amount. A top loan can be availed on your existing home loan, property loan, or personal loan. The amount received as a top-up loan can be used for meeting various personal requirements. An individual can apply for a top-up loan either with his/her existing lender or with a different lender by doing a balance transfer. Both private and nationalized banks, housing finance companies, private lenders, and other financial institutions provide top-up loans.

Key Features of Top Up loans:

Listed below are some of the important features of top-up loans:

  • Longer Loan Tenure- You can get it for longer tenures ranging between 10 to 20 years.
  • Quick and Faster Processing - As your lender already has your records, it does not take much time to process your top-up loan.
  • Flexible Repayment with Consolidated EMIs – You can repay the loan amount by using monthly EMIs. You can also combine your existing loan EMIs with the top-up loan and make consolidated monthly payments.
  • Competitive Interest Rates – Interest rates charged on top-up loans are usually lower than other loans.
  • Multipurpose Loan – The loan amount can be utilized for multiple purposes.
  • Minimal Documentation or no Documentation -Since you are a loyal customer with an existing home loan or personal loan on which you are opting for the top-up, your lender may not ask to submit your documents again.
  • Processing Fee Applicable -As a top-up loan is considered a new loan by a bank or any other lender, a standard processing fee may be applicable.

Top-Up Loan Interest Rate:

The interest rates charged on top loans are usually lower than usual personal loan interest rates but are slightly higher than what you may have paid on your existing home loan or personal loan, or property loan.

***Please note that the inter rates charged on top loans may vary from lender to lender.

How Does Top Up Loan Work?

A top-up loan can be availed by you provided you have an existing personal loan or home loan. A borrower can avail of a top-up loan from his/her existing lender or transfer the existing loan to a different lender/bank and apply for a top-up. This is usually done if the borrower thinks that the other banks or lenders are offering lower and attractive interest rates on top-ups. To put it simply – just like we top-up your mobile balance if we are running low on balance, similarly your lender/banks provide you the additional amount or top-ups over your existing balance to help you meet your personal expenses.

Who can avail of a Top-Up loan?

Any salaried or self-employed person can avail top-up loan provided he/she has an existing home loan, personal loan, property loan. Your lender will approve your top-up loan considering the following factors of an applicant -

  • Credit profile
  • Loan outstanding amount
  • Age
  • Income
  • Value of your assets
  • Other liabilities, if any.

A top-up loan is usually offered for a period of a maximum of 20 years. However, the tenure allotted for top-up loans may vary from lender to lender. Also, the amount granted as top-up loans may differ from lender to lender.

How Often Can You Top Up a loan?

The approval of a top-up loan is also dependent on the willingness of your lender. You can opt for a top if you need additional funds over and above your existing home loan or personal loan. The tenure of a top-up loan cannot exceed the tenure of your existing loan against which the top-up has been taken

Why do You Need a Top-Up Loan?

A top-up loan helps you fulfill your diversified personal and business requirements. You may consider opting for a top-up facility in the following situations-

  • If you require urgent funds to meet your personal requirements like marriage expenses, vacation planning, buying an expensive gadget, etc.
  • If you require immediate funds for your business expenses.
  • If you prefer to have loans at comparatively low interest rates for a longer tenure.
  • If you want to get a loan with minimal and no documentation.

Top Up Loan Eligibility:

An applicant needs to fulfill the below-mentioned eligibility requirements to avail of a top-up loan –

  • Should have an existing loan with the bank/lender.
  • Should have a good credit score.
  • Your name should not be on the loan defaulter’s list.
  • Should make regular loan payments on your existing loan
  • Both salaried and self-employed individuals can apply for top-ups with existing loan accounts.
  • You should have a good repayment record of your existing loan repayment. You should be repaying a certain portion of your existing loan in a timely manner to be eligible for a top-up loan.

Documents Required for Applying for Top Up Loan

Generally, the following documents are required to apply for a top-up loan-

  • Proof of identity - Passport/ Aadhaar card/ voter ID card.
  • Proof of address - Rental agreement/ passport/ utility bills (water bills/ electricity bills).
  • 2/3 passport sized photographs
  • Latest bank statements of a minimum of 3 months
  • Latest salary slips of a minimum of 3 months in case of a salaried person.

However, the documentation process may vary from lender to lender.

Benefits of Top Up loans:

A top-up loan comes with a host of attractive benefits such as -

  • It's faster than other loans and saves your time.
  • It’s easy to avail. What you need is just an existing loan.
  • Low-interest rates compared to other loans like car loans, personal loans, or credit cards.
  • Easy loan repayment option with monthly EMIs.
  • Get it for longer tenures.
  • Avail tax benefits.
  • No restriction on the usage of the top-up amount. You can utilize the amount to meet any personal needs.

Top-Up loan Tax Benefits:

One of the most exciting things about a top-up loan is that you can avail tax benefits on your loan amount provided the amount has been utilized for home repair or home renovation or meeting educational expenses. Tax benefits on a top-up loan can be availed under section 24 of the Indian Income Tax Act 1961 only on the interest payment made on your top-up loan. The maximum amount of deduction per financial is capped at Rs. 30,000, if it is top up on your existing home loan.

Frequently Asked Questions (FAQs)

  1. Do I get tax benefits on a top-up loan?
    Yes, you do get tax benefits on your top-up loan provided you utilize the loan amount to renovate or repair your home or meet educational expenses.

  2. When should you consider availing of a top-up loan?
    You should consider availing of a top-up if you need instant cash at low rates to meet your long-term personal requirements.

  3. Is it a good option to take a top-up loan?
    It’s a good idea to opt for a top-up loan if you need urgent cash at a lower interest rate. It can be availed at low-interest rates as compared to a personal loan, car loan, or other loans.

  4. What are the primary eligibility criteria to apply for a top-up loan?
    You need to have an existing home loan or personal loan with your bank or lender to apply for a top-up loan. You can also balance transfer your home loan to a new lender/bank and avail of a top-up loan.

  5. Is there any restriction on the usage of a top-up loan?
    No, there is no such restriction. You can utilize the amount to meet your diversified requirements starting from paying your children’s education fees to fund a vacation. Even though you are opting for a top-up on your home loan, you can utilize the amount for different purposes.

  6. How much top-up am I eligible to get?
    The amount of a top-up loan varies from lender to lender and factors like your monthly income and repayment history play a major role in determining your loan amount.