How to Add to an Existing Personal Loan

by Staff

If you already have an existing personal loan but suddenly find you have unexpected expenses to pay, you could consider getting a loan top-up. Basically, it enables you to add more funds to your existing loan amount.

That can be more beneficial than taking out a separate loan because it allows you to keep all your debt in one place and remain with your current lender.

If you are considering adding to an existing personal loan, keep reading to find out how to go about it.

Apply with Your Existing Lender

The first step is to contact your lender.

You need to find out whether a top-up loan is possible. If it is, you will need to submit an application.

Most lenders look at applications on a case-by-case basis when determining whether to accept or decline your application.

Discuss Your Financial Needs and Agree to Checks

For your top-up loan to be approved, your lender may want to discuss your financial needs, check your eligibility for the loan top-up, and check your credit file.

Sign a New Contract

If you are accepted for the add-on to your existing loan, you will need to sign a new contract.

But before signing on the dotted line, you may wish to extend your loan terms, depending on how much your repayments are increasing.

Find a New Lender if Your Application Is Denied

As long as your application is accepted, the process of adding to an existing personal loan is straightforward. However, your lender may not allow top-up loans or refuse your application.

If you cannot get a top-up loan with your existing lender, you should look at refinancing your personal loan with another lender.

You can easily find the right lender for your needs by using the excellent iselect compare personal loans platform.

When you refinance your personal loan, you move your debt to another lender and are able to borrow additional money.

Eligibility Requirements

As mentioned earlier, top-ups for personal loans are typically handled on a case-by-case basis, so eligibility requirements can vary from one lender to another. However, the requirements are usually similar to those for taking out a new loan.

You can usually be more eligible for a top-up loan if you have a record of paying your repayments on time and maintain a good credit score.

You can be less eligible if your loan has only been active for a short time or if your circumstances have changed since you first took out your existing personal loan.

Ask Your Lender Questions Before Signing the New Contract

Any lender considering accepting your application will want to ask you questions. But you should ask your lender questions too before you sign the contract.

For instance, you need to ask what administration fees you will be charged for adding to your existing personal loan. Most banks charge between $100 and $200, and the amount could be even higher.

You also need to ask about any restrictions that may be in place. For example, some lenders do not allow you to apply for a top-up loan within the first year of taking out your existing personal loan.


When you need to add to an existing personal loan, contact your lender to find out if a top-up loan will be considered.

If it will be, you will have to formally apply, which will involve completing a form, answering questions about your financial needs, and allowing your lender to make checks on your financial status.

Hopefully, the loan will be approved. Just make sure you ask the right questions and check the small print before signing the contract.

If your application is denied, all is not lost. Look for another lender and refinance your loan instead.

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The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.

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