Personal loan vs Top-Up Loan: Which one is better?

Personal loan vs Top-Up Loan: Which one is better?

If one visits a bank to get a big loan, then they could find a dilemma with personal loan vs top-up loan. These two loans are mostly interdependent, with one loan being the mouthpiece of the other. However, there are some key differences including top-up loan and personal loan interest rates. Here’s how personal loan vs top-up loan can be compared. 

Personal Loan vs Top-up Loan


The two loans are fundamentally different. A top-up loan depends on whether one has availed the personal loan or not, but one can easily avail a personal loan if they have a stable income source. There are some methods which can be used as a personal loan EMI calculator as well, and these methods often reflect on the personal loan interest rates. 

Differences in usage

In the choice between personal loan vs top-up loan the differences of usage strike one the most. A personal loan, often used to buy or build a house, or to go on a foreign trip that has been a dream for decades, is quite popular. It can also be used for any other purpose like an unexpected expense for a medical emergency. The personal loan interest rates are often a little too high, but they are mostly comparable to the top-up loan charges.

On the other hand, a top-up loan can be used to renovate one’s house or to take care of the education-related expenses. Unlike the personal loan EMI calculator which is a must for personal loans, the EMI of a top-up loan can be very easily adjusted and calculated using simple mathematical operations.

Differences in interest rate

The personal loan interest rates are a stable condition, and they often depend on attributes like the credit history of the customer, salary and their tenure at the place where they work. These rates are never floating, and once these variants are locked in, the rate of interest is always a fixed number. This personal loan is always a good idea for people with a stable income source from which they can spare the percentage of the money they are required to pay, calculated using the personal loan EMI calculator. The personal loan EMI calculator is a handy tool for a quick idea of the costs involved in a personal loan. 

The scenario with a top-up loan is different. The rates of this loan are really low even when considered in contrast to the lowest rates of personal loans. The rate is a little bit higher than the standard home loan rates at banks. 


Irrespective of the personal loan vs top-up loan dilemma going on in the minds of customers while availing a loan, it cannot be denied that a top-up loan can only be availed if one has paid their EMIs for six months to a full year. One cannot pay the personal loan completely before paying for the top-up loan, either. 

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