How does a Top Up Loan work?
Markusbirmingham (10 mths ago)
I am soon going to be eligible for a top up loan but not sure how it works? Please can you explain it?
FLM Loans (5 mths ago)
Eligibility for a top up depends on how long you took your original loan out for, please see below.
12 months- you need to have made 4 monthly repayments
24 months- you need to have made 8 monthly repayments
36 months- you need to have made 12 monthly repayments
48 months - you need to have made 16 monthly repayments
60 months - you need to have made 20 monthly repayments
Remember, if you have had any late payment charges we will not be able to proceed with the top up application for you. If you have made enough payments on time, you will be eligible to top up your loan to £5000. Top up loans are treated like a new applications so all the necessary check will need to be done again, even if you are using the same guarantor as your original application. If you want to change your guarantor then you are able to do so. We will need to speak to both you and your guarantor to run through the new verbal contracts.
How the top up loan works:
When taking out a top up loan, FLM pay off the outstanding balance on your original loan and pay out the difference to you.
For example-
When applying for a £5,000.00 top up loan with an outstanding balance of £1,500.00 on the original loan, the £1,500.00 would firstly be paid off using the new top-up loan.
This would mean that you would receive a total balance of £3,500.00.