If you feel like you need additional amount on your existing car loan, then you should opt for a car loan top up. The additional loan amount is known as a top up loan. The extra amount is given by the lender on the basis of his or her CIBIL score, current debt obligation and ability to pay off the loan. The interest rate slightly increases when you opt for a car loan top up. The top up loan amount totally depends the car's value and borrower's profile.
Cars are expensive and can't be purchased by the existing savings only. Even if you use all your savings to buy a car, it is not a financially sound decision to do so. Thus taking a car loan and paying regular EMI's makes more sense financially. After taking the loan, if you want to buy even expensive car, you should avail this loan.
What are the Advantage of Car Loan Top Up?
- By taking a car loan top up, you keep yourself open to better cars and to extend your car budget a little more. You can get a car rather quickly than saving money for it for years.
- You can get a car rather quickly than saving money for it for years.
- Car loan top up is a type of secured loan. When you buy a car with a car loan top up, it is kept as collateral to the bank but still you can use it while making the repayments.
- You don't need to keep your property or any other valuable items as mortgage against car loan top up.
- You can add your spouse as co-applicant.
- The repayment tenure for a car loan top up ranges from 3 years to 7 years, depending on the principal amount and interest rate.
- Banks offer flexible EMI options as per customer's needs.