Top Up Your Personal Loan From Premium Banks

HDFC, ICICI, AXIS, KOTAK

Rate of Interest
10.25% onwards
Repayment Tenure
12 To 72 Months
Processing Fees
₹ 999/- to 2%
Apply For Top-up Loan







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With The Representative APR of 11.25% of a Personal Loan For ₹ 2 Lakhs To Be Repaid Over 60 Months, The EMI Will be ₹ 4373.46 Per Month For The Entire Tenure.
About Personal Loan Top Up
A 'Top Up Loan' adds an extra amount to an existing loan account. As the term denotes, a “Top Up Loan” is a sum given to an applicant as an addition to the current loan account. Banks have devised this scheme to retain customers making an on-time repayment for credit taken.
Applicants requiring immediate funds find it convenient to secure a Top Up from Banks with which there is a relationship. Lenders are assured of repayments and look to attract good customers by offering lowered interest rates and extra charges per eligibility.
Representative Example of a Top-Up Loan
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 Lakhs
Calculations Post Personal Loan Top Up
Top Amount Approved ₹ 1 lakhs
Principal Balance of The Existing Loan ₹ 1,72,186.60
Total Loan Amount Post The Top Up ₹ 2,72,186.60
Rate Of Interest 12.5%
Tenure of Fresh Loan 36 months
EMI For The Fresh Loan Post Top Up ₹ 9105.63
Criteria For a Personal Loan Top Up
A Top Up to Personal Loan is readily available to all existing loan holders from Major Banks. The essential eligibility criteria remain the same though individual Banks may differ in their policy.
Financial Eligibility
The applicant must have the resources to afford the extra loan amount applied for. Financial obligations, which include credit card obligations and EMI for other loans, will be taken into account the current income, which consists of the monthly salary, and other sources, should be sufficient to cover the total EMI being paid monthly and the mandatory expenses.
CIBIL Score
The CIBIL Score of the applicant must be above the required benchmark and the credit history must not reflect delayed payments or settlements. The existing loan track must show a timely repayment record. The viewing must not reveal too many inquiries for credit as it can portray the applicant’s intention to acquire too much credit simultaneously.
Vintage of Existing Loan
An applicant may Apply For a Top Up to the existing loan after 3 to 6 months. Financers would like to assess the customer and verify that the credit taken is being repaid timely before further exposure.
This would apply more precisely to first-time loan seekers without a CIBIL Score. Banks can make exceptions for high-income applicants with minimal credit exposure, but the policy remains.
Profile of The Applicant
Suppose the loan seeker has changed employment since the Top Up norms will be applied per the current profile. The terms for the Top Up loan will depend on the category of the present employer in the company list, the employment profile of the applicant, and the net salary.
If a break in employment for too long, a valid reason has to be given, or the loan may be denied.
Benefits of a Top-Up Loan
Advantages of an Existing Relationship
Individuals with an existing relationship with the Bank such as a salary account Personal Loan, or any other credit line have an edge as the financer is familiar with the customer's details. Knowing the credit behavior of the customer inspires confidence to lend further. Thus, the request for a Top-up can be easily granted.
Quick Processing
Individuals with an existing relationship with the Bank such as a salary account Personal Loan or any other credit line have an edge as the financer is familiar with the customer's details. Knowing the credit behavior of the customer inspires confidence to lend further. Thus, the request for a Top-up can be easily granted.
For Better Terms and Conditions
An existing Personal Loan customer with a sound repayment track will always be preferred. The Bank will like to offer the best terms and conditions to fund and retain the customer at all costs. Applying For a Personal Loan Top Up will give the applicant leverage to get a lower Interest rate with the most reasonable terms.
Pay a Single EMI
With additional funds received as a Top Up, the existing Personal Loan will be reworked; the existing Personal Loan will be closed, and a new loan account will be generated with the balance of the previous loan and the fresh funds received.
The applicant will also get a chance to choose a comfortable repayment tenure. If the EMI is affordable, the applicant can repay the loan in a shorter tenure and save on interest tight on funds the repayment tenure can be extended to 72 months with a lower EMI.
Balance Transfer with Top Up
An applicant opting for a Personal Loan Balance Transfer to an alternate bank can secure extra amounts as a Top Up. The Balance Transfer will help reduce the EMI, and the applicant can simultaneously apply for a Top Up if additional funds are required. Thus, specific enhanced loan amounts are secured with an affordable EMI.
Eligibility Calculation for a Top Up Loan
The current salary drawn regularly will be the basis for the calculation EMI for other loans will be considered.
The eligibility calculation will be applied per the financer's norms and the customer's profile, which include.
The Salary Bracket
The multiplier will be applied per the salary norms the higher the income, the greater the multiplier. An applicant with a lower income will be eligible for a lower amount as per the salary proportion.
The Company Category
A customer working with a cat A company will be allowed to pay a more significant percentage of the salary as an EMI compared to an employee of a Category C company per the list.
The principal balance of the existing loan will be carried forward, and the amount required as a Top Up will be added to construct a new loan. A suitable tenure will be applied the applicant must have the financial ability to afford the extra EMI.
Process Steps For a Top-Up loan
  • The application for the request should be duly filled out and submitted with the required documents.
  • The Bank will check the CIBIL score of the applicant.
  • If required, a physical verification will be conducted at the office and residence premises.
  • The eligibility for the loan amount is calculated.
  • The underwriter will verify the details and give the decision.
  • Post-approval, the disbursal process is initiated, and the loan amount approved as a Top Up is transferred to the applicant’s account electronically.
  • The existing loan account is closed, and a new account is generated with the current principal balance and the top-up amount.
  • A fresh EMI will be initiated as per the tenure applied.
When is a Top Up Loan Not a Good Option?
Although a Personal Loan Top Up is convenient and quick to process, all the implications must be considered if a Top-up is unsuitable as per the scenarios below, the applicant has a choice of Applying For a Parallel Loan which is an additional Personal Loan.
A Top-up Works Best Early in the Tenure
The EMI deducted at the start of the tenure will have a more significant portion of interest than the principal. As the term progresses, the interest factor and principal portion are equal. After a substantial part of the interest is repaid, the principal loan amount forms a significant part of the EMI.
A Top-up later in the term will make the previous loan costlier, as a new amortization schedule is with the approval of the Top-up request. Interest already paid on the principal loan amount will not be considered, and the principal balance of the previous loan will be charged interest as per the new schedule.
If Foreclosure is Planned
The lock-in period for Personal Loans with most financers is 12 months, and if the applicant needs the funds for a shorter time and expects funds shortly to repay the loan, then a Top-Up is not recommended.
The applicant will have to pay another 12 EMI to repay the original loan amount, as a new loan will be generated post a Top-Up.
If The Requirement is For a Lesser Amount.
If smaller amounts are required in an emergency or to tide over a shortfall, then there are better choices than rescheduling an existing Personal Loan with a Top-up, especially if the tenure is passed the mid-term.
On the other hand, if the customer is overleveraged, a Top-up will help to increase eligibility and fulfill requirements.
If The Interest Rate Chargeable Has Increased.
A Personal Loan Top-up will be processed at the current interest rate as per the terms and conditions of the financer if the interest rate applicable has increased due to the market conditions or the applicant’s profile change, a Top-up will increase the cost of funds for the existing and Top-up loan amount.
Documents Required For a Personal Loan Top-Up.
KYC Documents
Passport Size Photograph
Current Residence Proof - (Driving License/Passport /Voter ID/Utility Bill/Aadhaar Card)
ID Proof - (Driving License/Passport /Voter ID/Aadhaar Card)
Pan Card Copy (Date of Birth Proof)
Aadhaar Card (Mandatory)
Owner Ship Proof (if Residence is Self-owned)
Income Documents
Bank Statement for 3 Months
Salary Slip for 3 Months
Form 16 for the Current Year
Charges Applicable Details
Rate of Interest 11.29%-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 outstanding
After 36 months- 2% of the principal is outstanding.
Loan Cancellation Charges Nil (However, the processing charges will not be refunded
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 CIBIL Report Copy Charge

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FAQ’S
  • How Many Times Can an Applicant Get a Personal Loan Top-Up?
  • A Top-up is granted as often as if the applicant is financially eligible for the loan amount and has maintained a sound repayment track.

  • What is The Processing Time For a Personal Loan Top-up?
  • The processing time for a Top-up is expedited as the financer has verified the applicant’s details funds via a Top-up loan can be disbursed within 48 hours.

  • Will The CIBIL Record Matter For The Sanction of a Top-up Loan?
  • The CIBIL will be checked every time the applicant applies for further credit any delays in repayment of any loans or credit cards will affect the decision for approval.

  • Who Can Apply For a Personal Loan Top-up?
  • An individual who is successfully running a personal loan and meets the criteria of the financer is eligible to apply for a Top-up.

  • What are the Terms Offered For a Personal Top-up Loan?
  • The terms, such as the interest rate, processing fees, and tenure offered for a Top-up, are similar to that of a personal loan.

  • What is the Tenure Offered For a Personal Loan Top-up?
  • The tenure for a top-up is applied from 12 to 72 months per the applicant’s ability to pay the EMI.

  • What is The Maximum Loan Amount Granted as a Top-up?
  • The loan amount granted as a Top-up is from ₹50k to a maximum of ₹25 lakhs.

  • What Happens To The Existing Personal Loan?
  • The Existing Personal Loan is closed without charges, and the principal balance is transferred to the new loan generated post the Top-up.

  • Will The EMI Change Post a Top-up?
  • After the additional amount has been added as a Top-up, a new EMI will be introduced per the tenure applied.

  • How will The Interest Rate be Charged For a Personal Loan Top-up?
  • The Interest rate for a Top-up will be charged monthly, reducing the balance.

  • Can a Top-up Loan be Processed Digitally?
  • An applicant can apply online for a Top-up with the parent Bank, the verification is done online and the loan amount is disbursed electronically.

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