FAQ’S

The interest rate for a top-up is set at the current HDFC Bank interest rate, from 10.5% to 12%, with a monthly reduction in balance. Factors influencing the interest rate for a personal loan top-up include:

Your current employment: If you have changed jobs since your existing loan was issued, your current employer must feature in the approved company category list of HDFC Bank. If your employer is included in the top tier, such as Super A or CAT A, you will be offered the lowest interest rate, whereas for a CAT C company, employment terms will vary.

The Loan amount approved as a Top-Up: The interest rate issued for loan amounts of ₹ 10 lakhs and above is 9.99%; therefore, if increased amounts are approved as a Top-Up, the rate of interest is issued accordingly.

If you need extra funds as a top-up to your existing HDFC Bank personal loan, your eligibility will be governed by the following:

Your net salary: The loan amount you are eligible for depends on your monthly income and the net amount transferred to your account. Eligibility is calculated according to the FOIR (Fixed obligation versus income received) method. If your income is above ₹ 50k per month, an increased FOIR is applicable, as compared to a salary below ₹50k.

The Company Category: The company category of your existing employer is considered when calculating the eligibility for the loan amount you can receive as a Top Up from HDFC Bank. The multiplier applied to a top-tier company, such as Cat A or CAT B, is higher than that applied to a company in Cat C. An applicant employed with a CAT A company earning the same amount as an applicant employed with CAT C is issued a higher loan amount.

• HDFC processes personal loan requests from applicants without a CIBIL score.
• For a TOP-UP requirement, the customer will be assigned a CIBIL score after 12 months of regular credit usage.
• Applicants new to credit will receive a Top Up after confirming that the CIBIL score is above the required benchmark.
• The personal loan must be repaid on time to receive a further Top Up.

Your CIBIL is checked when you apply for a Top Up personal loan from HDFC Bank. If you have a low CIBIL score, your credit history is reviewed to confirm the reason for the low score.

If the low score is due to a previous issue and you are currently paying your dues on time, the Bank may consider granting you a Top Up loan. On the other hand, if your CIBIL is low due to recent bounces or excessive credit inquiries, your Top Up request can be declined.

A personal loan tenure is the period over which a personal loan is repaid, including interest. Every month, an EMI will be credited to your salary account on a fixed date for the allotted tenure.

The tenure applicable for a HDFC Bank personal loan Top up is from 12 to 72 months, allotted as per the following:

The new Loan amount with a top-up: A new loan account is generated after a top-up, with the existing loan principal and the fresh amount added as a top-up. A fresh repayment tenure is allotted to the new loan amount.

The EMI payable: The EMI is calculated based on the loan amount and interest rate. The tenure is allotted based on whether the applicant can easily afford the EMI; if not, the tenure is increased.

The company category: The employer must appear in the upper category of the HDFC Bank company category list to obtain the maximum loan amount with a 72-month extended tenure. The tenure offered to lower category company applicants is up to 48 months.

• The charges applicable to an HDFC Bank personal loan top-up will vary with the approved top-up amount.
• There are no charges on the principal amount of the existing loan carried forward.
• Applicants with a salary above ₹50k per month are charged a processing fee of ₹ 7500.
• Customers with a salary below ₹ 50k will pay ₹ 4500/- as a processing charge.
• This processing fee remains fixed and does not vary with the Top Up loan amount.

The instant online personal loan top-up process for an HDFC Bank personal loan enables quick processing and disbursal.

• Applicants with an existing personal loan are issued a Top Up in 48 to 72 hours.
• The KYC data is available with the Bank, which helps in speeding up the process.
• Customers with a timely repayment track are preferred customers for the Bank.
• If the applicant is working with the same employer, the verification is waived.

Existing personal loan customers are offered a top-up as per the following terms:

• The existing personal loan must be at least 3 months old.
• The personal loan repayment track should have no delays or defaults.
• The applicant's salary must remain the same or increase.
• There must be no recent break in employment.
• The applicant must not have obtained any recent credit from an external lender.
• The applicant's CIBIL score must be above the required benchmark.

Salaried and self-employed persons with an existing personal loan account are eligible for an HDFC Bank personal loan Top-Up.

• Customers must fulfil the eligibility criteria of HDFC Bank to receive a Top Up loan.
• 3 to 6 EMI payments on the existing loan must be made before a top-up loan can be issued.
• The EMI of the personal loan must be repaid on time to receive additional funds as a Top-Up.
• The CIBIL score of the applicant or the business entity must be above the required benchmark.

An HDFC Bank top-up loan is available for individual and emergency purposes. The applicant must specify the end use of the funds when applying for a personal loan.

• Salaried applicants can use the funds for home renovation, travel expenses, wedding costs and emergencies.
• Salaried customers cannot use personal loan funds for business purposes or for investing in the share market.
• Inappropriate usage of funds for nefarious purposes or gambling can lead to further rejection of loan requests.

The EMI for an HDFC Top-up personal loan is calculated with the following inputs:

• The total loan amount, which includes the principal balance of the existing loan.
• The rate of interest applicable to the loan amount.
• The monthly income and obligations of the applicant.
• The tenure is applicable.
• An applicant can check for a suitable EMI by using the EMI calculator.

As per the foreclosure clause of HDFC Bank, an applicant can foreclose the loan by paying the principal after 12 installments are paid.

• Charges of up to 3% apply based on the loan amount issued and the vintage of the top-up loan.
• It must be noted that after the top-up loan is approved, the existing personal loan is foreclosed without any charges.
• Customers can repay the balance and foreclose the new top-up loan after 12 EMI payments.

Existing HDFC Bank personal loan customers can receive funds instantly for a top-up.

• With the online process, applicants can upload their KYC and income documents to expedite the process and disbursement.
• The applicant must have an on-time repayment record of 12 EMI and a CIBIL score of 720+ to initiate the process.
• The e-KYC process and online verification of income documents enable HDFC Bank to complete the required checks quickly and accurately.
• Upon approval, the funds are transferred directly to the salary account via ECS.

If you miss an EMI payment on your Top-Up loan, it is advisable to repay it as soon as possible. If the EMI remains unpaid, you can face the following repercussions:

• A bounce is recorded on the applicant's repayment track.
• The delay is reported to CIBIL for the number of days the EMI remains unpaid.
• Late payment charges and penal interest accrue daily.
• The CIBIL score is affected, and with a recent bounce, the customer is not approved for new credit if needed.

A CIBIL score is a 3-digit numeric assessment of an individual's creditworthiness. The Credit Bureau of India Ltd, or CIBIL, as it is popularly known, is a credit rating agency that maintains records of credit usage and repayment details for individuals and organisations. The credit score issued by CIBIL has become the universally accepted reference for granting further credit to customers. The implications of the ratings are as follows.

The CIBIL score required for processing a Personal Loan is divided into segments. The segment details are as follows:

A CIBIL Score below 300 points indicates either insufficient credit usage to generate a score or that the customer has recently initiated credit transactions. Beginning from a 0 or a -1 CIBIL score given to customers who have not used credit before or are first-time credit users.

A CIBIL Score of 300 to 650 is allotted if the customer has a history of defaults and delayed payments of EMI and credit card bills. Settlements and delinquent accounts will render a low score. It will require significant work before the customer is eligible for a personal loan.

A score of 650 to 700 is acceptable, depending on the reason for the downgrade. If the CIBIL score is stagnant due to non-use, the Bank can decide based on the applicant's credit history. If there are no major issues in the applicant's credit history, a personal loan is processed.

A score of 700 to 750 is most desirable, although 720+ is the CIBIL score benchmark required by most Banks to process a personal loan. An applicant with a CIBIL score of 700 or above is eligible to apply for a personal loan from Banks if they meet the other required eligibility criteria.

Any score above 750 is considered excellent, as the maximum score is 900. Customers who have been paying their dues on time and are using a healthy mix of unsecured and secured credit are assigned this score. Such applicants are considered premier customers and are readily approved for a personal loan.

The CIBIL Score plays an important role in the processing of a personal loan. Banks and NBFCs consider the CIBIL score and the customer's credit history when processing a personal loan.

• An applicant with a high CIBIL score is eligible for higher personal loan amounts at a lower interest rate.
• Applicants with a CIBIL score of below 700 points will not get any discount in the interest rate applicable.
• If your score hovers around the 650 points mark, you will have to apply for a personal loan from an NBFC at a higher interest rate.

• A personal loan is unsecured funding, and timely repayment of EMI helps build a CIBIL score quickly.
• It is a good idea to complete the personal loan repayment over the designated tenure, as the vintage of timely repayments will boost your credit score.
• If you have surplus funds and foreclose your personal loan, the successful repayment of dues will add to your CIBIL score.

Ensure there are sufficient funds in your account to clear the EMI by the due date, as even a single-day delay will have repercussions.

• The bounce is recorded on your Bank statement; no lender will issue credit if a bounce is reflected in your Banking for the past three months.
• The return of the EMI will always appear in the loan repayment track.
• Penalty interest is charged for each day the loan EMI remains unpaid.

Non-payment of Credit Card dues on the due date will incur the following charges:

• Late payment charges.
• Interest of 36% to 42% on unpaid dues.
• Overdue Charges till the minimum due of 5% is paid.

Your CIBIL score reflects your creditworthiness. If your CIBIL score is low, you can provide extra documents to substantiate your loan requirement.

Proof of residence ownership: Applicants who own their own residence are easily contactable and less likely to default on their loans. A self-owned residence provides security and gives lenders confidence, and they may ask for proof of ownership to approve a loan if your CIBIL score is low.

An alternate Bank Statement: A healthy Bank account with regular deposits and a substantial balance maintained at all times indicates financial stability. If your CIBIL score is low, an additional Bank statement is required to show that you have the financial stability to afford the timely repayment of your credit dues.

Documents of a co-applicant: A co-applicant with a good CIBIL score and a regular income will add value to your loan application if your CIBIL score is below the required benchmark. A spouse or a blood relative, such as a parent or sibling, may be listed as a co-applicant on a loan. The co-applicant's income and KYC documents must be submitted as proof.

Checking the CIBIL score and history is a mandatory part of the personal loan process for all lenders. The eligibility criteria norms for CIBIL can vary from lender to lender.

• Some banks, such as ICICI Bank, have a CIBIL score cutoff and do not process personal loan requests for scores below 730. The system will not process the request even if the score is 729.
• HDFC Bank processes personal loan applications for applicants with lower CIBIL scores, provided there are no current delays or defaults and the applicant meets the required eligibility criteria.
• AXIS Bank has an Apps Score system, with profile details including the CIBIL score entered online. If the system approves the application, the personal loan request is accepted.
• NBFCs will check your CIBIL score; if it is below 700 points, the lender can process your personal loan based on your monthly income and liabilities, residence ownership and other assets.

Your Income and CIBIL score are both essential features of the eligibility criteria for a personal loan. The income is a priority for the following reasons:

• Your personal loan application will not be processed if your income is below the required threshold.
• If you do not have a regular income with proof of being gainfully employed for 12 months or more, you are not eligible to apply.
• The income you earn will govern the eligibility for the amount of funds you can receive as a personal loan.

Your CIBIL score reflects your credit management abilities and is generated after 12 months of regular credit use. It has the following implications:

• A healthy CIBIL score of 720 points and above is your gateway to easy credit with the most suitable terms.
• If you have a high income but a low CIBIL score and a history of delayed payments, your personal loan request can be declined.

Although income and a CIBIL score are useful, you can still get an HDFC Bank personal loan with an income of ₹35k or more, even without a CIBIL score. However, if you are not employed and do not have a regular income, no lender will issue you a personal loan based solely on a good CIBIL score.

The employer and CIBIL score are important parts of the eligibility criteria for a personal loan. The company category and CIBIL score are verified in accordance with the personal loan processing norms.

• An employee from a company listed in HDFC Bank's approved company category list is a preferred applicant for a personal loan.
• If an applicant is employed with a top company but has a low CIBIL Score, Banks will consider the reason for the score decline.
• If there are no recent delays or bounces in the repayment track of loans, employment with an upper-tier company will add positive value to the request.
• If the applicant is a habitual defaulter and has over dues or settled accounts, the company category will not override the low CIBIL score.

Lenders will check your CIBIL score whenever a credit request is received. It is advisable to check banks' policies for the most suitable option before applying for a personal loan. You can also check your eligibility for the loan amount required using the online personal loan eligibility calculator. Applying to multiple Banks simultaneously will have the following repercussions:

• Each time CIBIL receives a credit inquiry, the score is reduced by 10 to 15 points.
• If you have more than 3 to 4 inquiries reflecting the past 3 months in your CIBIL history, Banks will deny your request for a personal loan.
• Numerous inquiries reflected in your CIBIL history will make you a suspect that you intend to receive funds from multiple lenders, for which repayment can become unaffordable.

If your CIBIL score has declined, it may be difficult for you to secure a personal loan, as most lenders require a CIBIL score of 720 points and above to issue a personal loan.

• In that case, you will either have to secure funds at a higher interest from an NBFC or provide security to secure funds.
• A high-interest personal loan can be a burden to your budget, and if there are delayed repayments, your CIBIL score will further decline.
• Your securities could be at risk; if you do not pay on time, the Bank may adjust the losses against your fixed deposit amount.

Be prepared with a repayment plan so that your EMI are paid on time, which will help to rebuild your CIBIL score.

Self-employed people are responsible for running their businesses successfully. An enterprise that is not financially sound risks taking on too many loans to cover expenses. If the credit taken is not repaid on time, it will lead to a low CIBIL score.

Obtaining additional funds through a personal loan to repay existing debts or revolving credit when your CIBIL score is low can be difficult.

• The business and all the Directors will have to be a part of the loan.
• The business owner must not be a defaulter, and there must be no bounces in the past three months.
• The business must show an increase in turnover over the past 2 years.
• If your CIBIL score is low, it may be easier to get a personal loan against security.