BT and Top Up loan

BT and Top Up loan

  • What is BT and Top Up loan?
  • Balance Transfer Loan -Balance transfer of loan is the process where a customer transfers his outstanding principal amount to another bank or financial institute primarily for a better rate of interest and also better features. Almost every type of loan - auto, personal, home, education has a balance transfer facility and almost all banks have this facility.

    Top Up Loan - A top-up loan is a great way of getting additional funds on a loan you’ve already taken. It does away with the need to apply for another loan. Many banks in India offer top-up loans at interest rates more or less similar to those of your existing loans. These loans also feature pre-approvals, quick processing, simple documentation, and fast disbursal.

  • Feature Of BT and Top Up loan?
  • balance Transfer Loan -

    1. Lower interest rates:- The most common reason for opting a home loan transfer is reduced interest rates. Reduction in ROI leads to lower EMI and hence more monthly savings. It may also reduce the overall tenure of your home loan.

    2. Good repayment track record may get you good Rate of Interest (ROI):- When opting for transfer, you can negotiate the terms and conditions of your home loan by citing your track record of payments, your credit score, and other points. This may help you in obtaining a lesser rate of interest, or better benefits than your current lender.

    3. Quick Loan Disbursal:- The loan amount will be disbursed quickly via a Demand Draft drawn in favour of the other bank name, and other credit card number/loan account number.

    4. Quick Loan Disbursal:- The loan amount will be disbursed quickly via a Demand Draft drawn in favour of the other bank name, and other credit card number/loan account number.

    5. Better credit score:- You can go for a balance transfer of your personal loan if you have been paying your EMIs promptly on a regular basis but feel that paying your remaining EMIs will be difficult due to some other personal financial difficulty or sudden additional expenses.

    6. Higher loan tenure:- This can include even the tenure of your loan. When your tenure increases, your monthly EMI will decrease and you can repay them over a longer period of time conveniently.

    Top Up Loan -

    1. Similar interest rate: - Banks usually charge you the same rate of interest that they’re charging you on your current personal loan. Sometimes, they may charge you a bit more. But in any case, if you’re comfortable with the interest rate you’re paying right now, you can get more money at the same rate.

    2. Usage: - With a term loan, you have the freedom to use it for any purpose you see fit. In the same way, a personal top-up loan also gives you the flexibility to use it for any purpose. There are no spending restrictions.

    3. No collateral: -Just like a normal unsecured loan, you don’t have to have to offer collateral to get the top-up amount either.

    4. Pre-approvals: - In many cases, if you have a personal loan, chances are your bank has already pre-approved you for a top-up. This way, you don’t have to go through a long application process again.

    4. Easy documentation: - Since you already have a loan in your name, the documents required for the top-up loan are very few. Fast processing: These loans are processed quickly, and the amounts are sent to your account within minutes at times.

  • Benefits of taking a BT and Top Up loan
  • Benefit of Balance Transfer Loan:-

    • First and foremost if the existing bank does not agree to reduce the interest rate even after RBI rate cuts and the EMI amount remains the same then in such cases it is always better to switch to banks which offer less interest rates and reduced EMI’s or longer duration for repayment.

    • Most of the banks provide standing instruction facility for repayment during refinancing. It is an easy and convenient method to pay EMI and the payment date is not missed adding more interest to the principal amount.

    • There are some banks who will not ask for several documents while refinancing the loan. They will take into consideration the refinancing with minimal documents depending on his history of repayments

    Benefit of Top Up Loan:-

    • You don’t have to hunt for another personal loan from another lender.

    • Top-up loans help you get additional funds in one of the easiest ways.

    • You don’t have to go through a long process of loan application and verification of documents.

    • The pre-approval, simple documentation and fast processing systems help save time and money.

    • You can pay consolidated EMIs by combining both your existing loan as well as the new top-up loan repayments.

  • Document Required For BT With Top Up Loan
  • Documents Required for Salaried Applicant:
    Neatly signed and filled loan against property application form
    Passport-size photographs.
    Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees
    Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
    Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
    Salary slips of last 3 months from application date.
    Form-16 issued by current employer.
    Bank statements of last 6 months from application date.
    Copy of details of all existing loans.
    A cheque covering the administrative costs/processing fees incurred by the bank in processing the application
    Property papers with OC and CC
    Documents required for self-employed professionals:
    Neatly signed and filled loan against property application form.
    Passport-size photographs.
    Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
    Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
    Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
    Proof of educational qualification which includes certificates, degrees, diplomas, and other academic credentials.
    Business proof (registration of business)
    Copy of ITR/Assessment Orders of 3 years
    Copy of challans proving that Advance Income Tax has been paid.
    Copy of details of all existing loans.
    Bank statements of last 6 months from application date.
    Documents Required for Self-Employed Businesspersons:
    Neatly signed and filled loan against property application form
    Passport-size photographs.
    Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees
    Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
    Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
    IT Returns of the three years preceding the one in which loan is applied for.
    Copy of details of all existing loans.
    Property papers with OC and CC.

  • List of Document Required to be Submitted for an BT Top - Up Loan:
    • A duly-filled loan application form
    • Three passport size photographs of the applicant
    • A government issued photo identity proof (Voter ID, passport, driving license, etc.)
    • Proof of residence (telephone bills or electricity bills would suffice)
    • For non-salaried applicants, proof of business is required
    • Bank statement for the past six months
    • Statement of personal liabilities
    • Personal assets statement
    • Signature identification from the present banking institution
    • Documents required for the guarantor
    • Statement for personal assets and liabilities
    • Two passport size photographs
    • Identity proof (Voter ID, passport, driving license, etc.)
    • Proof of the current and permanent residence
    • Address of the firm, in case the guarantor is self employed
    • Signature identification from the present banking institution