Advantages of an HDFC Top-Up Loan.
Quick Process
The customer is known to the Bank and will get an edge over a new relationship. HDFC Bank has received and verified the KYC documents previously and knows the details of the customer: which helps in the speedy process of the Loan: the file will not have to go through all the prescribed process stages. Thus, the loan amount approved will reach the customer soonest.
Better Terms & Conditions
The terms of the Top-Up will be applied as per the current profile, if an applicant has changed employment and is eligible for a discount on the interest rate, the applicable rate for the balance of the Personal Loan with the Top Up will be as per the discounted rate of Interest.
What is the Documentation required for an HDFC Top Up Loan?
The HDFC Bank processes a Personal loan Top Up based on an existing loan; the Applicant's details already exist with the Bank; therefore, the documents required for processing the Personal Loan Top Up are minimal. However, if there has been a job change, in that case, the income documents need to be submitted to confirm the current income and employment. A fresh residence proof is required if the Applicant has shifted residence or bought a new one.
Consolidate all Loans to Pay a Single Installment.
With a Personal Loan Top Up from, the Applicant can pay back all other credit lines & club the Amount under a single loan. Moreover, all dues pending for credit cards and other loans are paid back via a personal loan Top Up. Thus, the Applicant is comfortable paying a single HDFC top up loan EMI, saving the hassle of following up on various payments. In addition, HDFC Bank offers the best interest rate for financial borrowings compared to other banks or NBFCs.
Options for a longer tenure & a lower EMI.
If an applicant feels burdened by paying an increased EMI, there is an option of requesting a longer repayment tenure. With the Top Up, the Bank approves and constructs a new loan: by clubbing the principal balance of the previous Loan & the fresh Amount. The Applicant can request an increase in Tenure to make the EMI affordable.
Take a Balance transfer with a Personal loan. Top Up?
HDFC Bank offers applicants the opportunity to transfer the principal balance of their Loan from an external bank; with this maneuver, the Applicant receives a discounted interest rate. The Applicant can also request a Top Up as an additional benefit with the Personal Loan Balance transfer. Thus, the Applicant receives funds at the lowest rate of Interest with the convenience of paying a single EMI
Pay your Credit Card Debts with a Personal Loan Top Up from HDFC Bank.
Banks charge an interest rate of 36% for unpaid credit card dues: apply for a Personal loan Top Up to clear credit card dues and reduce the penal charges by half. The Bank pays the entire credit card amount dues directly, and the customer can repay the Bank via easy monthly installments.
Thus, with a Personal loan Top Up, the credit card bills are paid instantly. The customer is relieved of the high charges and receives the benefits of an increased CIBIL score.
Features of a Personal Loan Top Up
- An applicant can apply for a Personal Loan Top Up to HDFC Bank after a minimum period of 3 months after the disbursal of the primary Loan.
- HDFC Bank sanctions Personal Loan amount up to a maximum of 35 lakhs. Therefore, the total funding an applicant can receive as a Top Up, in addition to the pre-existing Loan, is up to 35 lakhs.
- The Tenure applicable to a Personal Loan post the Top Up is 12 to 60 months. The Applicant may apply for the desired Tenure; the Bank will sanction the same as per the eligibility of the Applicant and the ability to pay the EMI.
- HDFC Banks offers a discounted processing fee for processing a Personal Loan Top Up.
- On approval of a Top Up, the HDFC Bank combines the principal balance of the existing Personal Loan and the additional loan amount sanctioned as Top Up to form a single loan.
How to check Eligibility for HDFC Top Up Loan?
To check the eligibility for a Personal Loan the following points are to be noted:
- The request for the additional loan amount is processed per the Applicant's current employment status.
- If the Applicant has changed job, the HDFC Bank views the Loan application as per the status of the current employer in the HDFC Bank company category list.
- The Applicant's current income will determine the loan amount the Bank approves as a Top Up and if the Applicant can comfortably pay the EMI with the current income and obligations. A Top-up may not be approved if the Applicant recently acquired additional credit.
- The HDFC Bank will review the CIBIL score of the Applicant. There should not be any latest bounces or delays in repayment of any credit lines with HDFC Bank or any other financial institution. The score should be above 720 points.
- There should be no break in employment of the Applicant; a job continuity of 6 months minimum is mandatory to be eligible for a Personal loan Top Up from HDFC Bank.
- The repayment track of the Primary Loan with HDFC Bank should be devoid of any delayed payments or defaults. Therefore, the Applicant should pay his dues promptly to secure an additional loan from HDFC Bank.
What is the Procedure for a Personal Loan Top Up from HDFC Bank?
An application for the Top of a Personal Loan from HDFC Bank is processed as follows:
- The Applicant is required to submit all the relevant documents with the completed application form.
- The Bank will verify the authenticity of the documents submitted, and the CIBIL of the Applicant will be accessed to verify the score & status of other Credit lines being used.
- The Bank conducts physical verification of the Applicant's office & residence as per the information & documents submitted with the form.
- The underwriter will then decide on the request based on the inputs received.
- The Applicant is informed about the status of the request: the loan amount approved as a Top Up and the terms & conditions for the Loan.
What is the procedure for the disbursal of funds & a fresh EMI?
An Applicant can disburse an HDFC Personal loan Top online or physically sign the agreement, further:
- HDFC Bank terminates the existing loan account of the customer
- Further, the Bank transfers the Amount approved as a Top-Up to the Applicant's Bank account by ECS.
- Thus, a new Personal Loan is structured with the principal balance of the existing Loan & the Top Up.
- A unique loan account number and a fresh EMI for the total loan amount for the Tenure applied will hit the account on the designated date.
What is the difference between a Parallel/Fresh Personal Loan and a Top Up?
An Applicant can choose to apply for a Top Up on the existing Personal Loan or a Fresh Loan, the implications for both are different. The choice depends on the need and the financial circumstance of the Applicant. The significant differences are as follows:
- A new personal loan has its own identity, whereas a Top Up is a sum added to the existing loan.
- The applicant can apply for a fresh Personal loan from an external lender with varied terms, a Top-Up is an amount added to an existing loan with HDFC Bank, and the terms applicable are as per the current policy.
- With a Top-Up the applicant pays a single EMI, with a fresh loan there is an additional installment for the loan amount.
To apply for a Top Up or a new loan? Significant inputs, terms, and conditions helpful towards reaching a decision are as follows:
Vintage
The application for a Personal Loan Top is admissible after the repayment of three installments. A new loan is the answer if funds are required in an emergency.
Eligibility
The eligibility for the loan amount increases with a Top-Up as the principal of the existing loan carried forward to the new loan account is reduced by the installments paid. If an extra amount is needed, apply for a Top-Up.
Interest Rate
Check all market offerings for the lowest interest rate before applying for a Top-Up: HDFC Bank offers the best interest rate for a Personal Loan.
Foreclosure
The foreclosure option for a Personal loan is permitted after the payment of 12 EMI: if funds are required for a limited period, a Parallel loan will serve the purpose better, as a Top-Up will extend the foreclosure option for the existing loan.
Lower EMI
The EMI for a Personal loan with the Top-Up is lower as the existing loan is restructured, and the applicant can request a longer tenure for an affordable EMI.
Given below is a representative example of a Personal loan Top Up.
Details of existing Loan with HDFC Bank
| Loan Amount |
₹2 lakhs |
| Tenure |
36 months |
| No of EMI'S paid |
6 |
| Current EMI |
₹ 6,835.53 |
| Rate Of Interest |
14% |
| Top Up Amount Approved |
₹ 1 lakh |
Calculations post Personal Loan Top Up
| Top Amount approved |
₹ 1 lakh |
| Principal Balance of the existing loan |
₹ 1,72,186.60 |
| Total Loan amount post the Top Up |
₹ 2,72,186.60 |
| Rate Of Interest |
14% |
| Tenure of fresh loan |
36 months |
| EMI for the fresh loan post-Top Up |
₹ 9,302.69 |
What are the charges applicable for a Personal Loan from HDFC Bank?
The HDFC Personal loan interest rate is similar to the Top Up loan interest rate. Whatever interest the HDFC Bank is currently offering will apply to the Top Up loan.
A discounted processing fee is deducted from the loan amount approved. The existing loan is foreclosed without any charges. Listed below is the Rate chart for a Top Up loan:
| Charges Applicable |
Details |
| Rate of Interest |
10.29%-22% per annum @ monthly reducing balance. |
| Processing Fees |
Minimum 999/- up to 2.5% maximum. |
| Pre-closure Charges |
After 12 months -4% of the principal is outstanding.
After 36 months- 2% of the principal is outstanding.
|
| Loan Cancellation Charges |
Nil (However, the processing charges will not be refunded)
Interest will be charged on the interim period of loan closure.
|
| Cheque Bounce Charges |
Rs 550/- per cheque Bounce. |
| Charge for Late Payment |
2% Per Month from the Date of Unpaid EMI |
| Cheque Swapping Charges |
Rs 500/- |
| Amortization Schedule Charges |
Rs 200/- |
| Stamp Duty |
At actual as per Applicable Law |
| CIBIL Report Copy Charge |
Rs 50/- per copy. |
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Documents Required to Apply for a HDFC Bank Personal Loan Top Up
Income Documents
Salary Slip for the last three months.
Bank Statement from Salary account for the last three months showing three salary credits.
Form 16 for the last financial year.
Pan card copy
KYC Documents
Photo Identification proof. (Passport/Driving Licence/Voter I.D./Aadhaar Card/Ration Card)
Current Address Proof. (Bank Statement, Utility Bill, Rent Agreement)
Company I.D.
91-9711165183
