Can I get a top-up loan on my existing two-wheeler loan?

Yes, you may generally avail of a top-up loan on your existing two-wheeler loan under certain conditions. Here’s what you should typically know:

• Most banks and Non-banking Financial Companies (NBFCs) offer a top-up loan option on active two-wheeler loans, subject to certain eligibility criteria.
• The top-up loan amount is usually a certain percentage of the original loan amount, typically up to 50%. For example, if the original loan was ₹ 1 lakh, you may get a top-up of ₹ 50,000.
• The interest rate on the top-up loan amount is generally competitive and lower than that of a fresh two-wheeler loan.
• Processing fees and charges for the top-up loan are also comparatively lower.
• The repayment tenure for the top-up loan is structured so that the Equated Monthly Instalment (EMI) outgo does not increase significantly.
• You need to have paid your existing EMIs regularly without defaults to be eligible for a top-up loan.
• Your credit score should be good, usually over 750, to get approval for the top-up loan.
• If opting for a top-up, evaluate prepayment charges on existing loans as you will end up paying them.
• Compare top-up loan interest rates across loan providers before deciding, as rates may vary.