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The short answer
A top-up is a new, larger loan that first pays off what you still owe on the old one and pays you the difference, usually on a fresh tenure. Banks generally allow it once you have repaid part of the loan on time; Stanbic IBTC's unsecured loan page, for example, says you can revolve after 15% is repaid (as at Oct 2026). Under the CBN Guide to Charges, an enhancement fee of up to 1% applies to the additional amount, but restarting the tenure on the old balance can cost more in interest than the fee.
Top-ups are popular because they are quick: the bank already knows you, your salary is already coming in, and the paperwork is light. A message from your bank saying you "qualify for a top-up" can be tempting. Before you accept, it helps to see exactly what happens to the old loan and what the new one costs in total.
How a top-up works
- The bank calculates your outstanding balance on the existing loan, including interest to date.
- It offers a new loan amount, based on your salary, repayment record and current debts.
- On drawdown, part of the new loan pays off the old balance in full.
- You receive the difference in your account, less any fees and insurance.
- You start a new repayment schedule on the whole new amount, usually over a new tenure.
Some banks treat it as an enhancement of the same facility rather than a new loan. The mechanics are the same from your side: one loan, a bigger balance, a new schedule.
When banks allow a top-up
- After a repayment record. Banks usually want to see a number of instalments paid on time. Stanbic IBTC's page says its unsecured loan can be revolved after 15% has been repaid.
- Within affordability limits. The new repayment must fit your income. Access Bank's Salary Advance limit, for example, is up to 200% of monthly salary less existing monthly repayments, capped at ₦5,000,000.
- With a clean bureau record. Missed payments elsewhere can block a top-up even if your account at the bank is in order.
- With the same employer. A change of job or salary account usually ends top-up eligibility until a new record builds.
Which fee applies
The CBN Guide to Charges (effective 1 January 2020) has a specific line for this. A facility enhancement fee is negotiable, up to 1% of the additional amount disbursed, one-off, and the management fee does not apply when it is charged. If your bank instead books the top-up as a fresh loan, it may charge a management fee of up to 1% of the new principal. Ask which one your offer uses, because the base differs. Credit life insurance is usually recalculated on the new amount.
Worked example: the cost of restarting the tenure
Example only. You borrowed ₦1,200,000 over 12 months at an illustrative 2.5% a month on a reducing balance, paying ₦116,985 a month. After 6 payments you owe ₦644,366. The bank offers a top-up to ₦1,500,000 over a new 12 months at the same rate.
| Top-up to ₦1,500,000 over 12 months | Keep old loan and borrow the extra separately over 12 months | |
|---|---|---|
| Cash you receive | ₦855,634 | ₦855,634 |
| Monthly repayment | ₦146,231 for 12 months | ₦200,398 for 6 months, then ₦83,413 for 6 months |
| Interest still to pay on the old ₦644,366 | Included below | ₦57,542 |
| Interest on the new money | Included below | ₦145,326 |
| Total interest from today | ₦254,768 | ₦202,868 |
The top-up costs about ₦51,900 more in interest, because the ₦644,366 you already owed is now repaid over 12 months instead of 6. In exchange, the monthly repayment is lower and steadier. Fees are extra in both columns: 1% of the ₦855,634 additional amount is ₦8,556 under an enhancement fee, while 1% of ₦1,500,000 is ₦15,000 if it is charged as a new loan. Banks do not usually offer the right-hand column as a product, but the comparison shows what you are paying for.
When a top-up makes sense
A top-up is reasonable when the new money is needed now, the repayment fits comfortably and you value one lower payment over a slightly higher total cost. It is harder to justify when it is being used to cover everyday spending month after month, because each top-up extends the debt again and the balance never falls.
What to check first
- Ask for the payoff figure on the old loan and confirm it matches your statement.
- Ask whether the fee is an enhancement fee on the extra amount or a management fee on the whole loan.
- Compare total interest from today with and without the top-up, not just the monthly figure.
- Check whether insurance is recharged on the full new amount.
- Consider whether you can wait until the old loan ends and borrow then, if the need is not urgent.
- Read the new offer letter in full; terms can change between loans. See offer letter terms to read.
For how tenure drives cost, see bank loan tenure in Nigeria; for why limits grow, how to grow your credit limit.
Where Pryme fits
On Loans on Spaces, any limit is offered based on how your account is run and each agreement is shown in full for you to accept. See how a limit is offered.
Questions people ask
What is a loan top-up?
A new, larger loan that pays off your existing balance and pays you the difference, usually on a fresh repayment schedule.
When can I top up my bank loan?
Usually after a number of on-time repayments. Stanbic IBTC's unsecured loan page, for example, says you can revolve after 15% is repaid.
How much is the top-up fee in Nigeria?
Under the CBN Guide to Charges, a facility enhancement fee of up to 1% of the additional amount, one-off. Some banks charge a management fee of up to 1% if they book it as a new loan.
Is a loan top-up a good idea?
It lowers your monthly payment compared with running two loans, but restarting the tenure on the old balance usually adds interest. Compare total interest from today.
Sources
- CBN: Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (effective 1 January 2020) · accessed Oct 2026
- Stanbic IBTC: Unsecured Loans · accessed Oct 2026
- Access Bank: Salary Advance FAQs (PDF) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.