Home Loan Top-up

The eligibility criteria for a top-up loan are different for every lender. Still, here are some common criteria for top-up loans:

• No more than one EMI bounce should have occurred in six months before the application
• If an EMI bounce occurred, it should be resolved before the next EMI is due
• You must pay the original home loan EMI in full for nine months
• Banks require one year of clear repayment history for top up loans, coupled with balance transfer home loans from other banks

The following are the general criteria, which are the same as home loans:

For Self-Employed Individuals:

• Resident Indians only
• Aged between 23-70 years
• Minimum 4 years of business continuity
• Must earn minimum ₹1.5 lakh per annum
• Tenure duration 12 months - 300 months

For Salaried Individuals:

• Resident Indians
• Aged between 21-60 years
• Minimum 3 years of experience
• Must earn minimum ₹1 lakh per annum
• Tenure duration 12 months – 360 months

You do need many documents to apply for a top-up loan because the lender is usually the same as your home loan. Still, keep the following documents handy:

• PAN Card
• Valid Photo identity proof
• Valid Address proof
• Self-attested copies of income proof
• For salaried individuals: Last three months’ salary slip/salary certificate, latest year’s ITR with income computation/Form 16, last six month’s bank statement reflecting salary credits, repayment track/bank statements proof of track with loan sanction letter/amortization schedule
• For self-employed individuals: Income tax return with income computation, Balance sheets and P&L accounts with schedules, GST return for the number of months not covered in the latest financial year, credit card statement for 6 months, copy of Contract Order and Form 16 A (applicable only if income is from contracts), bank statements for the last 6 months, account of the individual borrower and co-borrowers, and repayment track/bank statements proof of track with loan sanction letter/amortization schedule