Asha wants a house, and Vikram wants a vehicle. Both need loans, but learn the hard way that one loan will not cover every need. Asha needs a long-term loan secured by property, while Vikram needs a loan collateralised by a vehicle.

In 2025, 40%-45% of all personal loans sanctioned by banks in India were indeed top-up loans. So, many individuals feel the need for extra funds even after getting the loan amount they originally applied for.

But here’s the catch: while applying for extra funds, most are unclear whether they should go for a fresh personal loan or simply add a top-up to their existing one.  

Today, one can hardly imagine life without electronic payment solutions. Whether you are paying bills online, transferring money to family members, or shopping at your favourite retail store, EPS is everywhere. 

You’re all set to sign the dotted line of your personal loan agreement. The prospect is thrilling.  
But let’s hit pause before we get the ink flowing. It’s vital to have clarity in this moment.
 

Anushree needed to make an urgent payment to a vendor. The vendor said, “You can send it via IMPS or UPI, whichever suits you.” Anushree paused. Until that moment, she thought IMPS and UPI were the same thing. Clearly not. Both help you transfer money instantly, but in very different ways.

Ravi opened a fixed-deposit savings account last week. His friend Priya added money to hers around the same time. Both put in ₹1,00,000, but with two different banks.

For any borrower, submitting a personal loan application marks the end of a process. But in reality, you’re merely passing on the baton to the lender. It’s the cue for a series of behind-the-scenes journeys. You have eligibility checks, KYC verification, loan approval workflows, and finally, disbursal. There’s a whole flurry of activity.

UPI has become the mainstay of all transactions in the country. So much so that a lot of people have even stopped carrying physical money with them.  That said, as is the case with all technology, no matter how good, sometimes things go wrong, and UPI is no different. 

Most people think about personal loans only when an expense appears that their savings cannot comfortably handle. In those moments, understanding how a personal loan works becomes essential.
This guide clearly explains the meaning, purpose, and benefits of personal loans, helping you decide when they are a practical choice. Read on!