Balance Transfer & Topup Loans
Home Loan & Loan Against Property
Document Criteria
Overview
A Top-up loan is a convenient refinancing option for borrowers who already have an existing home loan and now want additional financing along with better lending terms on their current home loan. A top-up loan can be facilitated by transferring the loan balance to any Banks/NBFC's at a more favorable interest rate.
If you opt for a balance transfer, you have the option of availing a top-up loan of Rs.1 Crore* or higher, depending on your eligibility – giving you access to a substantial credit sanction and letting you save on the overall cost of your home loan.
Approval for the Top-up Home Loan comes at a relatively low interest rate compared to unsecured loans, such as a personal loan. Moreover, it is flexible in usage and can be used to meet any financial need for housing purposes.
Benefits of Balance Transfer Home Loan & Loan Against Property.
- Lower Interest Rates: Borrowers can save on interest costs by switching to a lender offering lower interest rates.
- Reduced EMIs: A lower interest rate may result in reduced EMIs, making the loan more affordable.
- Improved Terms: Borrowers may benefit from improved loan terms, such as longer tenure or flexible repayment options.
- Consolidation of Debt: Borrowers can consolidate multiple debts by transferring outstanding balances from various loans into a single home loan.
Features and Benefits of a Top-up Loan
A Top-up Loan is offered to borrowers who have already availed Home Loan, if borrower meets the eligibility criteria they can easily get approved for a Top-up Loan
Eligibility Criteria for a Top-up Loan
If you have or have had a home loan from a lender, the eligibility requirements for a Top-up loan are similar to those for a home loan. Depending on the lender, the requirements for a Top-up loan may vary, but here are some important things to keep in mind:
- before the next installment payment is due, you must pay off any missed payments
- if you are combining a balance transfer from another bank's home loan with a Top-up loan, it's important that you provide one year's proof of regular repayments
- you must have paid off the existing mortgage in full for at least 6 months
- you should not have missed more than one installment payment in the past year. It is fine if you have only missed one payment
- please note that these requirements are general in nature and may vary depending on the specific guidelines of the lender you approach for a Top-up loan
Additional Documentation
| Income Proof | |
|---|---|
Salaried |
1. Latest 3 month’s salary slips. 2. Latest 2 years Form16. 3. Latest 6 month’s salary account Bank statement required. 4. Copy of increment letter (If applicable) 5. If current employment is less than 1 year then total 3 years work exp. Proof ‘required – Latest employment Appointment Letter/ CTC) 6. Copy of repayment track record / statement of account is required if any existing loan. |
Self-Employed (SENP/SENP) |
1. Latest 2 years Income Tax Returns along with 2. Copy of Computation of Income, Profit and Loss A/C, Balance Sheet & Audit Report attested by C.A 3. Company profile / Website 4. Updated 1 year Current A/C & Saving A/C Bank statement as mentioned in Balance Sheet. 5. Partnership Deed (In case of Partnership company) 6. MOA / AOA (In case of Pvt Ltd company) 7. TDS certificate (If applicable) 8. Copy of Degree Certificate in case of professional. 9. Shop Establishment License / Gumasta /Udyam Registration / GST / VAT for Business proof. 10. Copy of repayment track record / statement of account is required if any existing loan. |
Additional requirements with Application Form & in case of Balance Transfer/Top Up cases
- Processing fees cheque in favour of Banks/NBFC’s.
- Additional documents as per the Credit of Bank.
- Original List of documents from existing lender along with copies of property documents.
- Latest Outstanding amount from existing lender.
- Copy of repayment Track record / Statement of account from existing lender.
FAQs:
It is the transfer of debt from one lender to another in order to obtain better conditions.
Home loans, personal loans,balances, etc.
Lower interest rates, lower payments, simplified debt management.
Apply for a new loan, enter the amount to be transferred and the new lender will pay off the old balance.
Some lenders charge a fee, but some also offer fee-free deals.
Yes, if the new lender agrees.
Usually a few days to a few weeks.
Top-up Loan: FAQs
Eligibility criteria may vary among lenders but generally include factors such as a good repayment track record on the existing loan, sufficient income to repay the additional loan, and a satisfactory credit score.
The amount you can borrow with a top-up loan depends on factors like the value of your property (for home loan top-up) or your repayment history. Typically, lenders offer top-up loans up to a certain percentage of the original loan amount.
Interest rates for top-up loans may be slightly higher than the interest rates on your existing loan but are usually lower than personal loan interest rates. It’s essential to check with your lender for the current rates.
The approval process for a top-up loan is usually quicker and more straightforward compared to applying for a new loan. Since you already have an existing relationship with the lender, documentation requirements may be minimal.
Yes, you can prepay or foreclose a top-up loan just like any other loan. However, there may be prepayment charges applicable, so it’s essential to check with your lender beforehand.
You can apply for a top-up loan through your existing lender by submitting a request along with the required documents. The lender will assess your eligibility and inform you of the loan terms and conditions.
