Can i add to my Personal Loan

Loan Top Up

An extra loan means new loan that you can use for a existing home loan, personal loan or property loan. You are only liable for an additional loan if you have made monthly loan payments on your current loans. You may apply for an additional home loan or add a personal loan either with the same bank or with another bank as you changes your balance sheet. The interest rate on these loans is typically 0.25%–1% above the normal loan rate. The highest interest rates on home loans range between 7.6% and 11.2%. Similarly, the incremental loan rates for personal loans range from 11 percent to 23 percent. You can use home loans from some top banks like Axis Bank, HDFC, SBI etc, as they offer the lowest-priced loans of 7,35%.

Likewise, if you apply for personal loan addition, you can apply for personal loans from Axis Bank , ICICI Bank or HDFC Bank, a bank of this kind which offers personal loans at interest rates beginning at 10.75%. Get the latest exclusive deals and discounts on your new online home loan or personal loan.

  • You would consider adding a loan if,
  • You need urgent funds to meet your personal needs.
  • You need immediate funds to expand your company, marriage, holiday etc.
  • Long term funds at low interest rates are preferred.
  • You have already an current home loan, personal loan and property loan for which you pay a defined amount of EMIs.
  • You want a small loan and no paperwork.

Eligibility for Top Up Loan

To make use of a top-up loan, you must meet the eligibility requirements listed below:

You will take advantage of a supplemental loan if you have an existing loan from a creditor and the borrower. The bank will also be able to provide you with an extra loan on your current loan because you have already paid a portion of the loan and made all the payments promptly.

You may apply for an additional loan from your current lender or opt for an additional loan on the balance transfer. This means that you transfer your loan to a new bank and use an additional loan for your current loan.

In either case, after a fixed payment period of a 1 year term of your current home loan, and after acquisition or completion of the financed house, you will apply to the new bank.

How would it be used for?

It can be used for any personal financial needs and is not supervised by the bank. This is ideal for home improvement, marriage expenses, family vacations, your child’s education, the procurement of latest technological devices or home appliances, unexpected medical expenses or any other emergency.

Personal loans are also useful for investing in the business, repairing your vehicle, down payment of the new home, etc.

Criteria for qualifying

While it differs by bank, the age, profession, employment, willingness to repay the loan and the place of residence are general requirements.

For personal loans, you must have a daily source of income, whether you are an employee, an autonomous businessman or a student. Eligibility of a individual is also influenced by the organization in which he operates, credit history, etc.

Maximum length of loan

It may be from one to five years or from 12 to 60 months. On a case-by – case basis, shorter or longer tenures can be tolerated but is rare.

Loan disbursement

It is normally paid out to the lender within 7 working days of the loan submission. If accepted, either you get a cheque / draft equivalent to the loan sum or you have your money electronically deposited in your savings account.

How much should one borrow? How much?

It generally depends on your income and depends on whether you are a paid or self-employed individual. The banks usually limit the loan to no more than 40-50 percent of your monthly income.
Any existing loans serviced by the applicant will also be considered in calculating the amount of the personal loan. To the self-employed, the loan sum shall be determined on the basis of the income received in compliance with the most recent accepted profit / loss statement, taking account of any additional liabilities (such as current company loans, etc.) he may have.

Is there a minimum sum of credit?

Yes, although the exact amount varies from institution to institution. Many borrowers have set the principal amount of their minimum personal loans to Rs 30 000.

What bank / financial borrowing institution?

It is good to compare offers from different banks before making a settlement. Some key factors for deciding on a loan provider include interest rates, term for loans, processing fees, etc.

How do banks determine the permissible amount of credit?

Although the conditions for the loan approval may vary from one bank to another, some of the key factors may include your credit score, the present level of income and liabilities. A high credit score (close to 900) means you have adequately serviced your past loans and/or credit card responsibilities, making your borrowers feel free to borrow, which ensures that you are eligible for a larger amount of loans.

Your current income and liabilities (excluding credit card obligations, unpaid loans, expired EMIs etc) directly impact your repayment ability. So if you’re in a lower income or have a large amount of unpaid credit card bills or outstanding EMI loan, you’ll be penalized with a larger amount of personal loan than those with higher income or lower financial debt.



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