Updated: Aug 24, 2022, 13:00 ISTShare:
Synopsis
Top-up loans generally have attractive interest rates. They differ based on the lending bank and the type of existing loan on which you take a top-up loan. Below are the factors that affect a top-up loan's interest rate:
- Type of the existing loan (home loan, personal loan or car loan)
- Interest rate of your existing loan (A top-up loan may have an interest rate same as or 0.25% to 1% higher)
- Your eligibility
- Your relationship with the lending bank
- The lender's policy
- Your credit profile (factors like your credit score and nature of employment)
Loan details like the sanctioned amount and tenure
