8th April 2021
What are repeat and top-up loans?
top-up

Top up loans and repeat loans are a handy way of letting you borrow more money if your circumstances change. Maybe you’ve got an investment opportunity, or you need extra money to fix your car. Repeat loans and top-up loans can help you borrow the money you need, often at a better rate than you initially qualified for. Here we take a look at both top-up loans and repeat loans and the advantages they can offer.

What is a repeat loan?

A repeat loan is another loan taken out with the same lender that you applied for your first loan with, so it’s a good option when you want to stick with a lender you trust. Another advantage of staying with the same lender is that you might be eligible for lower rates. If you have repeatedly demonstrated that you’re somebody who makes on-time repayments, then you have proved to the lender that you are a responsible borrower.

Because it takes into consideration the first loan, a repeat loan is taken out once this has been paid off. Apart from that, repeat loans are processed in the same way as any other loan, you decide how much you want to borrow and make the application. The lender checks to see if you can afford the loan, and if you’re approved, they will pay it directly into your bank account. If the lender offers you a better APR on a repeat loan, you could even use this to pay off some of your more expensive existing debts at a better rate.

What is a top-up loan?

A top-up loan is also for customers who would like to borrow more money from the same lender. Unlike a repeat loan, a top-up loan lets you borrow extra money while you’re still paying off an existing loan. If you find that you need more cash, a lender will use the top-up loan to pay off and close your existing loan.

A top-up gives you a new, slightly larger loan, combining the balance due from your existing loan and the extra amount you’ve applied for. It’s a way of getting additional funds without taking on another line of credit. You can also take the opportunity to renegotiate new payment terms on your loan, so that you can pay it off faster or spread the cost out over a longer period of time. You might even be offered a lower interest rate if you’ve already made timely repayments.

Should I take out a top-up loan/repeat loan?

Top up loans and repeat loans are ways of giving you access to extra funds using the relationship you have built with a trusted lender. Because they don’t involve adding extra lines of credit, your repayments can be kept simple and manageable. The amount of extra cash you can borrow will depend on your personal circumstances, but if you’re not sure if you can afford a repeat or top-up loan, or if your circumstances might change, then they might not be right for you. At loans by mal we take your financial situation very seriously and for this reason we only offer repeat loans and only when the current loan has been settled.

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