As human beings, it is natural to dream and want to achieve greatness and success, whether it is for oneself and to better one’s life or to build a brighter future for their next of kin. There are many opportunities to spend money on better schools, larger homes, bigger cars, and lavish weddings, but in recent years, whether due to inflation, taxation, or any other factor, it has become increasingly difficult to save money or have the adequate financial means to fulfil these dreams.
This is where opting for an instant personal loan online from a reliable lender such as Stashfin makes the difference. It enables you to take charge of your finances and achieve your dreams in a much simpler, quicker, and more efficient way. This article explores the world of personal loans and compares the former with top-up loans to help you choose the right loan for your specific needs.
What is a personal loan?
A personal loan is a sum of money borrowed by an individual in exchange for paying back the principal amount and a charged interest rate in equated monthly instalments (EMI) over a pre-determined period. For example, getting a personal loan for ₹1 Lakh at an interest rate of 12% for three years will result in an interest amount of ₹19,572 in addition to the principal sum of ₹ 1 Lakh with an EMI of ₹3321 per month.
Many people prefer instant personal loan online India due to their flexibility of use, quick disbursement, fixed tenure and EMI, and no collateral. Personal loans are typically unsecured, meaning that while the interest rate is higher than a secured loan, the borrower does not have to set up collateral as security. Thus, they can fearlessly get a loan without having to have collateral such as a home, car, or gold to set up as security in the first place.
What is a top-up loan?
A top-up loan is an additional loan that can be taken on top of an existing loan. This additional sum, along with the interest payable, is added to the outstanding balance remaining to be paid, and the repayment duration can be extended depending on the remaining tenure of the existing loan.
This is beneficial in a number of ways; it does not add another loan to remember, the interest rate can be the same or lower depending on the lender, and the loan tenure can be the same. This is beneficial when facing emergencies or unexpected expenses.
What are the differences between instant personal loan online and top-up loans?
There are several ways in which an instant personal loan and top-up loans differ. Here are the differences one can expect between the two:
| Factors | Instant personal loan | Top-up loan |
| Loan repayment duration | Fixed loan duration with EMI calculated when getting the loan. | The repayment duration of a top-up loan can be extended to reduce the EMI or remain the same with a higher EMI for convenient repayment. |
| Purpose of the loan | Personal loans can be obtained for any reason, granting flexibility for significant investments or expenses such as weddings, home renovations, medical expenses, etc. | Top-up loans are typically used to deal with emergencies and unexpected expenses such as hospitalization. |
| Interest rates | The interest rates for personal loans are typically higher due to being unsecured. | The interest rates for top-ups can be the same as those on existing loans or lower, depending on the lender’s relationship. |
| Loan amount | The loan amount an individual can get depends on their needs, their financial history, credit history, credit score, replayability, debt-to-income ratio and several other factors. | The loan amount depends on the outstanding balance of payment, repayment history, individual needs, debt-to-income ratio, etc. |
| Approval process | The approval process for instant personal loan online India varies depending on the lender’s policies, fulfilling eligibility criteria, etc. | The approval process is much easier and quicker, allowing for a more efficient process. |
Where to get an instant personal loan online India and top-ups?
Individuals looking to get personal loan online instant approval can look for reliable lenders with a good name in the industry, such as Stashfin. Stashfin is a leading name in the industry, offering instant personal loans of up to ₹5,00,000 completely online directly from its app within minutes. With an APR starting at just 11.99% and offers such as 0% interest up to 30 days, it makes the perfect partner and lender for loans up to ₹5,00,000.
In addition to a personal loan, Stashfin offers top-up loans to its customers to cater to their needs and support them through their requirements, enabling a hassle-free and efficient experience. Do make sure to check out the policies and the app for more details to make an informed decision when getting the top-up loan.
Conclusion
In 2024, easy loan availability and online personal loan apply has revolutionized the options for individuals by providing them with the necessary means to achieve their goals and fulfill their dreams by taking charge of their finances. With top-up loans over personal loans, it is possible to not just deal with large expenses but also any unexpected expenses, including emergencies. So get the right loan or top-up for your needs and live and achieve your dreams without fear.