Can you top up an existing loan?
What is a personal loan top-up? If you unexpectedly need some extra cash, you can ask your lender for a loan top-up. As an already established customer, it is an easy way to get additional money when you need it. Technically, you have to apply for a second loan with an existing lender and sign a new contract.
In some instances, it is not possible to add additional funds to an existing personal loan that you have already taken out. However, you may be eligible for a loan top-up and add more funds to your current loan so that your debt is all in one place with the same lender.
If you have one existing loan
You can get a new loan that pays off your current loan and gives you the extra money you need. You'll then have one, larger loan with a new interest rate and new monthly repayments.
You can avail a top-up personal loan only if you have an outstanding personal loan (existing relationship) with the lender. A top-up loan can be availed only after a certain stipulated time has passed- after you have repaid a certain portion of your loan.
A loan top-up is accessing additional funds on a multiple installment facility after paying a certain number of installments on time for an extended period at the same rate.
Further Loan
You can apply for an additional loan of R50,000 or more through your home loan account if: your home has increased in value since the original loan was granted; your home had a surplus value at the time of original registration; or. you'll be using the loan to improve your home and increase its value.
Depending on your eligibility and the lender's policy, you may also be able to get a top-up amount over and above the principal amount outstanding from your current loans. Apply For a New Loan with a Co-Applicant: Taking out a second personal loan as a single applicant may be a hard feat to pull off.
You should have an existing relationship and an outstanding Personal Loan with the lender. You should have repaid all the EMIs of the existing loan on time. You should have repaid a specific portion of your loan (typically 12 EMIs) before you apply for a Top-Up Loan.
If you already have a personal loan, can you get another one? The short answer is yes. There's no limit to the number of personal loans you're allowed to have. However, the amount of debt you can take on is limited to how much a lender is willing to let you borrow.
If the interest rate of a new loan is higher than your current loan then it could be more expensive to top up your loan (which would involve paying more on the amount you originally borrowed too) than it would be to take out an additional loan and make two separate monthly repayments.
How does topping up a loan work?
Topping up gives you the cash you need – whether it's for a new car, renovations or consolidating existing debts. When you top up a loan, we don't actually add money to it. Instead, we set up a new loan for the remaining balance plus the extra amount you want to borrow.
A top up loan, being based on a personal loan, also does not require security or collateral against the loan amount. A personal loan has no fixed purpose of usage. It can be used by the borrower for any purpose. A borrower can apply for a top up on a personal loan if he falls short of cash.
Can I apply for a further loan before I repay my current loan? Yes, you can apply for a top up loan at any time; you don't have to repay one loan before applying for another. If your new loan is based on a different interest rate, our system is enabled to run two or more loans on the same account at the same time.
If you need extra funds, you could consider topping up an existing loan instead of taking out a second loan. To do this, you'd need to get in touch with your current provider, either online or over the phone. By borrowing more on a current loan, you're effectively refinancing it.
The Takeaway. In most cases, borrowers can't add to an existing personal loan. However, you may be able to apply for a second loan. Eligibility requirements vary by lender, but in some cases you need to have made several consecutive on-time payments before applying for a new loan.
A Top Up Loan is a new loan that takes the existing balance of your current loan and combines it with an additional amount of money you want to borrow. This may increase your monthly repayments and change the term of your loan to an extended loan term.
Yes, you can top up your existing personal loan, subject to approval from your lender. This involves borrowing additional funds on top of your current loan balance, effectively increasing your loan amount. To qualify, you usually need to have a good repayment history and meet the lender's credit criteria.
Will increasing your personal loan amount get listed on your credit report? Yes, it definitely will! Like taking on any other loan, a top-up loan will show up in your credit history. Your credit score helps future lenders to make predictions about your future financial behaviour based on your past and current habits.
An Add Loan increases your existing loan account and can only be completed on a variable home loan. If you have a Fixed Rate loan, you would need to break-off the Fixed Rate which could incur Early Payment Interest Adjustment1.
Can I borrow more money on an existing loan? In most circumstances, yes - lenders are generally willing to lend more money on top of your initial loan arrangement, subject to affordability.
Can I get more loans on an existing loan?
Yes, you can get another loan if you already have one as long as you meet the eligibility criteria of the lender.
A personal loan can be a useful financial tool to help you achieve your financial goals. While it's possible to have more than one type of loan at the same time, there are certain considerations that need to be factored in. Just because you qualify for another loan doesn't mean you should apply for it.
When you top up a loan, we don't actually add money to it. Instead, we set up a new loan for the remaining balance and the extra amount you want to borrow. Then we pay off your old loan from that total, including any early repayment charges, and transfer what's left into your account.
Refinancing is another way you can access the equity in your home. Unlike a home loan top up, refinancing involves taking out an entirely new mortgage to replace your existing home loan. You can refinance your home loan with the same lender or switch to a completely different lender.
You'll get a top-up only if the loan maturity date is before your retirement age. How long does it take for a loan top-up amount to reach my account? This normally happens in 3 to 5 working days.
