Can I get a top-up loan if my existing loan is almost paid off?

Yes, you can avail a top-up loan from your bank or Non-Banking Financial Company (NBFC) even if your existing loan is nearing completion. However, most financial institutions require you to have repaid a certain percentage of your original loan amount before applying for a top-up.

The decision on a top-up will be based on the lender's credit policies, risk appetite, and assessment of individual borrower profiles. Toward the closing stages of the existing loan tenure, one should check with their financial institution on the specific requirements and parameters considered for approval of a top-up loan.

Generally, financial institutions will evaluate factors like your repayment history, credit score, income stability, etc. Having a good track record on your current loan can improve your eligibility.

So, the key is to have a healthy repayment history and credit score, adequate loan-to-value (LTV) ratio, and meet the lending institution’s eligibility norms.