Even the best individual planners sometimes cannot predict their financial health. This is because emergency expenses come up without any notice. There are some unpredictable moments in life that come up instantly and cannot be delayed. If you are already having an ongoing personal loan but you need some more cash, there are two ways – a top-up loan or a concurrent personal loan. These two ways can help you with an instant source of the additional funds so that you can cover up your Instant needs. Such a situation can hit anytime, and that is why the non banking financial institutions have come up with tailored loan products to make life easy. All you would need to do is keep your existing repayment on track and a good credit score. When you already have a loan and you need another, your credit score will be thoroughly checked. These options of borrowing are gaining huge prominence and you will find one easily if you choose Clix Capital. It makes borrowing easy, and you can get hold of Instant funds without the need of any collateral or security. The rate of interest will be high, but to meet up with an emergency, you must go for one! Personal loan online apply process will be smooth when you choose any one from the two.
What is a personal top up loan?
If you have an ongoing personal loan, you have surely heard about a top-up loan. This can be offered from the financial institutions or you can apply for one too. A top up loan is usually offered on an ongoing loan when your repayment record is a good one. You can easily get hold of a top up loan when you have kept your credit score right and your repayment history on track. A top-up loan is one where you can borrow an amount of money on top of an existing loan. It will be single repayment and you will only have one EMI. This loan will use part of the money to settle the existing debt with your lender; the rest is given to you as cash. It makes sure that there is no other different loan, but you will have only a loan and single EMI. This will help in decreasing the burden of loan and ensure your ability to meet your needs. A top-up Instant personal loan is always given for a good credit score and repayment.
What is a concurrent loan?
A concurrent loan is meant for those with a need for an instant fund. If one is having an ongoing personal loan already, he can also go for another loan. This is a concurrent loan which adds one loan to another. So you will be having two personal loans, and double EMI monthly. When your salary gets credited, you need to pay two EMI. A concurrent loan is not so popular because of the high amount of burden involved in having two loans together. If you have an emergency or an instant need, you should go for a concurrent loan.
Personal top up loan vs concurrent loan
Affordable: If you talk in terms of affordability, the top up personal loan is always very affordable. It is having an extra amount of funds without taking a different loan. This will help you cover up your needs with an extra source of funds but not having a separate loan. The EMI will be one and you will not have any extra burden. This will help you deal right with the need for excess funds within just one single personal loan. It will be a good choice of loan, so that one can meet the need for extra expenses without going for a second Instant personal loan. However if you go for a concurrent loan, there will be two separate loans and two EMI to pay. Having two EMI to pay can be very expensive. You need to understand the total loan cost to understand the affordability.
Convenience: A top up loan is convenient as you only have one loan to handle. However for concurrent loans you will have two loans and you need to manage the EMI of two different loans. You need to take the right decision before you delve into a concurrent loan. A top up loan is helpful to meet the need for your extra cash without having an extra burden. Never go for a loan when you already have one. A concurrent loan is not a good choice. It will not make your financial health stable if you borrow the second time.
Wrapping up
You cannot find one- size- fits all solution. Before you delve into a new loan, you must consider all the factors of top up and concurrent loan. A personal loan online apply process can be easy if you meet the right eligibility criteria. An instant personal loan in Mumbai is always the best way to meet your instant needs without any hurdle. You should never take on more debt than absolutely necessary and always consider all the drawbacks before you do.