5 MinsSept 14, 2021
Last year, Neeraj Dubey needed Rs 7 lakh to repair his dilapidated ancestral home before the monsoon. When he called up Axis Bank to check about a personal loan, his relationship manager made an interesting proposition. Why not take a balance transfer and top-up loan on his car? It can be processed quickly with minimum documentation.
Neeraj drives an SUV for which he had taken a loan of Rs. 11 lakh three years ago. The tenure of the loan is five years, and he has been regular in paying his EMIs. He could also get up to 150% of the original loan, depending on his documentation. Neeraj had never heard of a car balance transfer and top-loan and wanted to know more.
This is what he learned:
What purpose can he use the loan amount for?
He can take a top-up car loan from Axis Bank and use the loan amount for business or personal use (terms and conditions apply). It could be a personal reason, such as house repairs in the case of Neeraj or a medical emergency. If you are an entrepreneur, the loan could be for working capital for your business.
How much loan can he avail?
Axis Bank can offers up to 150% of the original loan value as a top-up loan.
How will he know if he is eligible for a top-up loan?
A top-up car loan is given at the discretion of the lender. Generally, the bank checks to see if the borrower has been making regular payments and hasn’t missed a single one in the last 12 months. Since Neeraj hasn’t missed a single payment in three years, he easily qualifies for a top-up loan. If you have a good track record, like Neeraj, you may be eligible for a pre-approved top-up car loan. Check with your bank for the same.
[Also Read: It’s a great time to buy a new car]
How does this impact Neeraj’s credit score?
If Neeraj avails of a top-up loan and pays off the balance of his original loan, his credit score will improve because he has closed one loan before beginning EMIs on another.
Who is eligible for a car loan?
Anyone who is between the ages of 21 and 60 at the end of the loan tenure. Salaried individuals should have had completed at least 1 year with their current employer with regular salaries coming in. They should also have a clean payment record for minimum 12 months on the original car loan. For self-employed individuals, the age criteria ranges between 25 and 60 years, and they need to show income tax returns for minimum 2 years with a minimum ITR of around Rs 2 lakh to Rs 3.5 lakh.
Axis Bank Balance Transfer and Car Top-Up loans are available at an attractive interest rate. The loan amount could be up to 150% of the original loan amount. The maximum loan tenure is five years. If you are a member of the Axis Bank Priority Banking programme, you can also get special benefits. To know more, click here.
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