What is the process of applying for a top-up loan?

The process of applying for a top-up loan is relatively simple and quick if you are an existing customer with a good repayment track record. Here are the key steps:

1. Pre-Qualification: Approach your bank or Non-Banking Financial Company (NBFC) where you have an existing loan and check if you meet their eligibility criteria for a top-up. Factors like your repayment history, credit score, income stability, etc., will be evaluated.
2. Documentation: If you are an existing customer, minimal paperwork is required. Basic Know Your Customer (KYC) documents and the latest income proofs need to be submitted. If you are salaried, the latest salary slips and bank statements are needed.
3. Loan Application: You need to fill a standard top-up loan application form either online or through a branch visit. Details like loan amount needed, repayment preferences, etc. need to be provided.
4. Processing: The loan provider will appraise your application based on your creditworthiness, income, existing obligations, property value, etc. This may involve a credit bureau check and property valuation.
5. Loan Approval: If your loan is approved, you will need to complete documentation formalities like signing the agreement, submitting post-dated cheques, completing the ECS mandate, etc.
6. Disbursal: Once documentation is completed, the additional loan amount gets disbursed to your linked bank account within a few working days.