Understanding HDFC Bank Personal Loan Top-Up: Eligibility, Benefits, and Considerations

Can I get a top up on my HDFC Bank Personal loan?

HDFC Bank, the leading personal loan provider, offers existing customers the option to access funds for individual use through a Top Up. A personal loan top-up is a convenient option for HDFC Bank personal loan customers. The existing personal loan gives the customer leverage with the Bank and helps speed up the process for additional funds. 

What are the HDFC Bank Top Up personal loan eligibility criteria?

To get a top-up on an existing personal loan, the applicant should fulfil the following eligibility criteria:

Income: The applicant should be earning a regular income of ₹ 30000/- and above, transferred electronically to the salary account every month.

Company Category: The applicant’s current employer must appear on HDFC Bank’s list of approved companies for personal loan sourcing.

CIBIL Score: The applicant’s CIBIL score must be above the required benchmark of 720 points, and the applicant must have no recent credit.

HDFC personal loan track: The EMI repayments for the existing HDFC personal loan should be made as per the schedule without delays or defaults.

Financial Eligibility: The applicant should be eligible for additional loan amounts as per the HDFC Bank multiplier and FOIR (Fixed obligations versus income) calculations.

Existing credit dues: The credit card dues and EMI for other loans must not exceed the eligibility criteria requirements.

Gap period: To Top Up an existing personal loan, the HDFC Bank requires a gap period of 3 months or more, particularly if you do not have a good credit score.

What are the benefits of the HDFC Bank personal loan top-up?

• With Top Up, an applicant can receive an Instant Personal Loan Online to help deal with emergencies and personal expenditures.
• A Top Up enables an applicant to receive surplus funds when required, as the principal amount repaid is deducted from the new loan structured after the top up.
• With an HDFC Bank top up personal loan, the existing balance of the personal loan and the fresh loan amount are merged, facilitating the payment of a single EMI.
• The applicant can request an extended tenure for repayment of the new loan amount, with an affordable EMI.

How many times can an applicant apply for an HDFC Bank personal loan Top Up?

• An applicant can receive a Top Up personal loan from HDFC Bank 3 to 4 times as required.
• The applicant’s profile must meet the eligibility criteria for the HDFC Bank personal loan top-up.
• The applicant should earn a regular income with no gap in employment.

When should I take a personal loan top-up?

• • After a Top Up, a restructured loan generates a fresh amortisation schedule. Taking a Top Up at the beginning of the tenure is beneficial, as later on you would have paid the maximum interest component. 
  • When you need funds in an emergency, applying for a Top Up is a good option. As an existing customer, HDFC Bank will have already verified your details, enabling the loan to be processed faster than with an external lender.

• If there is a requirement for maximum funding, a top-up will increase eligibility, and the applicant can apply for an extended tenure to repay the loan amount with an affordable EMI.

When is a personal loan top up not a good option?

• If you need a smaller amount, applying for a new loan is a better option, as the funds can be repaid if extra funds become available.
• Compare the interest rate of your existing personal loan. If you are getting a better interest rate from an alternate lender, apply for a parallel loan. 
• If your personal loan has passed more than half of its tenure, restricting the loan with a top-up will cost you more.
• If you have multiple personal loans, then applying for a balance transfer and consolidating the loans works better by taking a top-up.

How will the status of my current personal loan change after a top-up?

After your request for a top up has been approved, your personal loan will change as follows:

• The personal loan is preclosed without any charges.
• The top-up amount is transferred to your salary account.
• The principal balance is transferred to a new loan account.
• The principal balance of the existing loan, plus the top-up amount, forms the new loan.
• A fresh tenure and EMI are applied from the following month.

 Can you get an HDFC Bank personal loan top up if you work for a non-listed company?

• If an applicant has changed employment after an HDFC Bank personal loan has been granted. The top-up amount is processed according to the current employer status as per the HDFC Bank company list.
• If the applicant’s company does not appear on the HDFC Company Category list, the top-up request is denied.
• Whereas, if the applicant was previously employed with a Category C company as per the Approved company list of HDFC Bank and is now working for a Category A company, the applicant is offered a higher loan amount.

What are the factors that affect the interest rate for an HDFC personal loan top up?

The interest rate for your personal loan post a top up will depend on the following factors:

• Your current income. If your income has increased, you are eligible for a higher loan amount at a lower interest rate.
• The current HDFC Bank interest rates will apply after a top-up. If the rates are increased, your loan will be processed at a higher interest rate.
• The loan amount was approved after a top up. If the loan amount approved after a top up is ₹10 lakhs and above, the lowest interest of 9.99% is issued for your personal loan.
• Your current employer category, as per the HDFC Bank company category list, offers lower interest rates if you are employed with a top-tier company.

Conclusion:

A Top Up works well for applicants needing funds on an urgent basis, whereas if the HDFC Bank personal loan interest rate has increased or you have repaid the major part of your primary loan, an HDFC Bank parallel loan is a good option.