Top-up loans are one of the credit choices available to a person in the event of a financial emergency. HDFC Personal loans top-up loans are credits that are added to a personal loan that has previously been taken out. HDFC bank provides HDFC personal loans and home loan top-up loans. You can apply for a top-up loan if you have an existing HDFC personal loan that is still current and you realise you need more money. A top-up loan is also approved faster than a regular personal loan because the documentation is already completed with the financial institution when the original personal loan is applied for.
Eligibility Criteria for obtaining a top-up loan
The requirements for top-up loans differ from one bank to the next. Certain generic conditions, on the other hand, are taken into account. These elements are summarised as follows:
- Positive repayment history: HDFC Personal loans are unsecured loans with no repayment history. As a result, an HDFC personal loan extension will be unsecured as well. In these situations, the HDFC bank must minimise the risk component to the greatest extent possible. You must have a clean payback history in order to be eligible for a personal loan top-up. Having a spotless credit history indicates that the risk element is low.
- Having a loan that is active: A top-up loan is a loan that is added to an existing debt. As a result, you must already have an HDFC personal loan in order to apply for a top-up loan.
How Do I Get a Personal Loan Top Up?
- You can ask your HDFC branch for a top-up loan. You can apply for a HDFC top up loan if you already have an active HDFC personal loan and your lender offers the option of an additional loan.
- If your current lender does not provide a top-up loan, you can use a balance transfer to move an active loan from one lender to another. You can apply for a top-up loan from your new lender when the balance transfer is completed.
Documents for an HDFC Top-Up Loan are required.
The following documents are necessary for the approval of a top-up loan:
- Application form which must be completely filled out and signed.
- KYC* (Know Your Customer) is a document that verifies your identity and where you live.
- Documents referring to property and proof of income
- Photographs of all applicants / co-applicants in passport size
- A cheque for the processing fee payable to ‘HDFC Ltd.’
- The loan’s end use must be clearly stated in the declaration and documentation.
Benefits of a HDFC Top Up Loan
- In one minute, you may check your eligibility for a personal loan at certain HDFC Bank offices and on the official website using the HDFC Personal loan eligibility calculator.
- Get your loan approved in as little as one day after submitting your paperwork.
- Customers of HDFC Bank who have been pre-approved can acquire a loan in as little as 10 seconds.
- Interest rates are low and affordable.
More About HDFC Top Up loans
The HDFC top-up loan can be repaid in monthly installments (EMI) for a maximum of 15 years. The actual loan length is determined by factors such as your credit history, age at loan maturity, and the age of the property at loan maturity, among others. The length of time will also be determined by the repayment plan you choose.
In general, the interest rate on top-loans is the same as or somewhat higher than that on home loans. However, you can be pretty certain that the interest rate on the top-up credit will be lower than the interest rate on other consumer or business loans.
The Bottom Line
The maximum amount of top-up loan you can get is determined by factors such as your current income levels, other loan obligations, and is limited to 75 to 80 percent of the market value of the property when combined with your ongoing house loan. However, the highest amount of top-up loan on a home loan that can be taken out is Rs. 50 lakh. If you want to get the best HDFC personal loan interest rate and want to avail the HDFC top up loan at lowest interest rates, better maintain your credit score to create a positive image in front of your lender.