New Delhi, Sept. 11 -- An individual has already taken a personal loan and is paying the regular EMIs. They now need more money for an emergency. In such a situation, the individual has two options. They can either go for a top-up loan or a new personal loan.

In this article, we will understand what a top-up loan is, the difference between a top-up loan and a new personal loan, and which one an individual should go for.

A top-up loan is a credit facility provided by banks and NBFCs that allows existing borrowers to borrow an additional amount on top of their existing loan. The top-up loan facility is made available to borrowers making timely payment of EMIs on the existing loan. The bank/NBFC may make the top-up loan facility available ...