Top up loan vs. personal loan: Know the difference between them - Bajaj Finance

Personal Loan
Top-up Loan
Personal Loan vs. Top-up Loan
Which to choose

Rs. 40000 - Rs. 55 lakh

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Understanding personal loan

In today's fast world, money needs can pop up suddenly. Personal loans help by giving quick cash for various expenses. But when you need more money later, you have two choices: take a new personal loan or get a top-up on your existing loan. Each has different benefits, so knowing the difference helps you pick the right one.

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A personal loan is unsecured, meaning no collateral needed. When checking personal loan documents, lenders look at your income, credit score, and payment history. Online personal loans are easy to get - just fill a form and upload documents. Once approved, money goes to your account. With Bajaj Finance Limited, getting a personal loan is convenient and hassle-free with minimal paperwork.

Why this helps: No property or gold needed as security, making it accessible to more people.

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Understanding top up loans

A top up loan is extra money you can borrow on top of an existing loan. The existing loan could be personal, home, or any other type. Many people think top up loans only work with home loans, but that's not true. You can get top-ups on personal loans too, if your lender offers this facility.

Pro-tip: To qualify for a top up personal loan, you usually need to have paid a certain number of EMIs on your current loan first.

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Top up loan vs. personal loan

Here are the key differences:

Source of borrowing
- Personal loan: You can get it from any lender if you meet their requirements and have the right documents.
- Top-up loan: Only available from the same bank/company where you have your existing loan. To get a top-up from another lender, you'd need to transfer your current loan first.
Tenure
- Personal loan: The tenure of personal loans varies by lender. With Bajaj Finance Limited, you can repay over up to 96 months.
- Top-up loan: Usually matches your existing loan's remaining tenure, but can be adjusted.
Interest rates
- Personal loan: Personal loan interest rates depend on the lender. We offer rates starting from 10% p.a. Your income, job history, age, and credit score affect the rate.
- Top-up loan: Since you're an existing customer, you might negotiate better rates with your current lender.
Processing time
- Personal loan: Takes time because lenders do complete background checks - verifying documents, credit score, payment history, income stability, etc.
- Top-up loan: Faster processing since your lender already has your details and payment history. Lenders prefer giving top up on a personal loan to customers who pay EMIs on time.
Maximum loan amount
- Personal loan: Varies by lender and depends on your credit score and eligibility. With Bajaj Finance Limited, you can borrow up to Rs. 55 lakh with minimal documentation.
- Top-up loan: Usually a fixed percentage of your existing loan amount. The exact amount depends on your lender and loan type.

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Which should you choose?

The choice between a personal loan and a top-up depends on your situation and money needs. Both have advantages, so understand the pros and cons before deciding. Pick a loan that fits your financial goals and helps you manage debt responsibly while meeting immediate needs.

Smart tip: Use tools like the personal loan EMI calculator to help make the right decision for your finances.

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Type of fee	Applicable charges
Rate of Interest per annum	10% to 31% p.a.
Processing fees	Up to 3.93% of the loan amount (inclusive of applicable taxes).
Flexi Facility Charge	Term Loan – Not applicable Flexi variant - A fee will be deducted upfront from the loan amount (as applicable below) Up to Rs. 1,999/- for loan amount less than Rs. 2,00,000 Up to Rs. 3,999/- for loan amount from Rs. 2,00,000 to Rs. 3,99,999 Up to Rs. 5,999/- for loan amount from Rs. 4,00,000 to Rs. 5,99,999 Up to Rs. 7,999/- for loan amount from Rs. 6,00,000 to Rs. 9,99,999 Up to Rs. 8,999/- for loan amount from Rs. 10,00,000 to Rs. 14,99,999 Up to Rs. 9,999/- for loan amount from Rs. 15,00,000 to Rs. 19,99,999 Up to Rs. 10,999/- for loan amount from Rs. 20,00,000 to Rs. 24,99,999 Up to Rs. 11,999/- for loan amount from Rs. 25,00,000 to Rs. 29,99,999 Up to Rs. 12,999/- for loan amount of Rs. 30,00,000 and above All the Flexi facility charges above are inclusive of applicable taxes Loan amount includes approved loan amount, insurance premium, and VAS charges.
Principal Holiday Facility Fees	Up to Rs.1999/- for loan amount less than Rs.2,00,000 Up to Rs.3999/- for loan amount from Rs. 200000 to Rs.399999 Up to Rs.5999/- for loan amount from Rs. 400000 to Rs.599999 Up to Rs.7,999/- for loan amount from Rs. 600000 to Rs.999999 Up to Rs.8,999/- for loan amount from Rs.10,00,000 to Rs. 1499999 Up to Rs. 9999/- for loan amount from Rs. 15,00,000 to Rs.19,99999 Up to Rs.10,999/- for loan amount from RS. 20,00,000 to RS.2499999 Up to Rs.11,999/- for loan amount from RS.25,00,000 to RS. 29,99999 Up to Rs. 12,999/- for loan amount of Rs.30,00,000 and above Above charges are inclusive of applicable taxes & will be deducted upfront from loan amount *(Loan amount includes approved loan amount, Insurance Premium & VAS Charges)
Bounce charges	Up to Rs. 1,200 per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason
Part-prepayment charges	Full Pre-payment: Foreclosure can be processed post clearance of first EMIs. Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment. Flexi Term Loan (Flexi Dropline): Up to 4.72% (Inclusive of applicable taxes) of the Dropline limit as per the repayment schedule as on the date of full prepayment. Flexi Hybrid Term Loan: Up to 4.72% (Inclusive of applicable taxes) of the Dropline limit as per the repayment schedule as on the date of full prepayment. Part-prepayment Up to 4.72% (Inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part Pre-Payment. Not Applicable for Flexi Term Loan (Flexi Dropline) and Flexi Hybrid Term Loan.
Penal charge	Delay in payment of instalment(s) shall attract Penal Charge at the rate of up to 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount.
Stamp duty (as per respective state)	Payable as per state laws and deducted upfront from loan amount.
Annual maintenance charges	Term Loan: Not applicable Flexi Term Loan (Flexi Dropline): Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit (as per the repayment schedule) on the date of levy of such charges Flexi Hybrid Term Loan: Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit during Initial Tenure. Up to 0.295% (Inclusive of applicable taxes) of Dropline limit during Subsequent Tenure

Note: Additional cess if any, will be applicable to all charges according to state law.

*Terms and conditions apply.

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Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.