Let’s be honest unexpected expenses can pop up anytime and when they do we often look for smart ways to manage them.
If you already have a car loan you might’ve heard about the option to take a top up.
And lately there’s been a lot of buzz around whether you can get a top up loan of up to 200 percent of your car’s current value.
Sounds unbelievable right But is it really a myth or actually possible in India Let’s break it down in simple terms what’s real what’s exaggerated and what you should know before applying.
Understanding Top Up Car Loans
A top up car loan is basically an extra loan your lender offers you on top of your existing car loan.
It is a way to borrow more money using your car as security without having to apply for a whole new loan.
Sounds convenient right Lenders usually consider this option for people who have been regular with their EMI payments.
And the money you get through a top up loan You can use it for anything home renovation wedding expenses medical emergencies or even expanding your business.
The 200 Percent of Car's Value Claim: Fact or Fiction
Now comes the big question can you really get a loan worth 200 percent of your car’s value It might sound like a stretch but it is not entirely fiction.
While traditional banks usually offer a top up up to 120 to 150 percent of your original loan or the current value of your car there are some specialized NBFCs and fintech companies in India that go beyond.
In fact some banks and few others NBFCs offer Loan Against Car products that could go up to 200 percent or even 250 percent of your car’s value but under certain conditions.
That said many of these higher loan amounts fall more under the Loan Against Car category rather than a plain top up loan.
So while lenders may use the terms interchangeably it is important to read the fine print.
Factors That Influence Your Top Up Loan Eligibility and Amount
Let’s talk about what really matters when you apply for a top up because no two borrowers are the same. Here’s what lenders actually look at
Number of EMIs Paid and Repayment History
Lenders love consistency. If you’ve paid at least 12 to 18 EMIs without missing a beat that works in your favor.
It shows you’re reliable and you have built some loan equity in your car.
That history tells the lender this person is low risk.
CIBIL Score and Creditworthiness
Your CIBIL score is like your financial report card.
A score of 700 or above can open more doors for you including better interest rates.
A lower score It doesn’t always mean rejection but you might have to settle for stricter terms or higher interest.
Banking Relationship and Lender Flexibility
Believe it or not your relationship with your bank can make a difference.
If you’ve been with them a while and have used their other services it might work in your favor.
But don’t just stop at your bank some NBFCs are way more flexible and may offer better deals. So always compare.
Car’s Current Value and Age
Here’s where it gets practical the older your car the less it’s worth in the market.
Lenders use that value not what you paid originally to decide how much more they can lend you.
So newer cars naturally offer more room for top up loans.
Your Income and Existing Debt
Even if your repayment history is good lenders want to be sure you can afford the new EMIs.
That is why your income and debt to income ratio are important.
If your DTI is low meaning you don’t already have too many EMIs eating into your income lenders feel more confident about offering a top up.
Remaining Loan Tenure
The number of months left on your existing car loan can also affect how much top up you get and for how long.
Lenders usually align your top up tenure with your current one or sometimes restructure the whole thing if needed.
Need Clarity? Partner with Adiguru Financial Services
So back to the main question is getting a 200 percent top up on your car’s value a myth or fact It is mostly a fact but with conditions.
It is not something every lender offers and it is definitely not something everyone qualifies for.
But yes if your profile is solid your repayment history is clean your CIBIL score is healthy and your car still holds good value then yes you can get it.
At Adiguru Financial Services we help you explore these high value options by connecting you with the right lenders.
Whether you’re looking to refinance take a top up or explore better terms our team helps you do it the smart way.
Need help with your car loan top up Contact us today
Contact us today for a free consultation!
Email: info@adigurufinancialservices.com
Phone: +91 886 652 9124 | +91 989 840 9871
FAQs
What is a top up car loan?
It is an extra loan on your current car loan using the same car as security.
Can I get a top up loan up to 200 percent of my car's value in India?
Yes but only with select lenders like NBFCs or fintech firms not most traditional banks.
What’s the minimum CIBIL score needed?
Ideally 700 and above but some lenders may accept lower scores with strong banking history.
How many EMIs should I pay before applying?
Usually 12 to 18 EMIs with no delays.
Does the car’s age affect the loan amount?
Absolutely newer cars can qualify for higher top up amounts.
Do I need extra collateral for this top up?
No your existing car continues to act as collateral.
Are top up loan interest rates higher?
They can be slightly higher than the original car loan but often lower than personal loans.
Can I switch banks to get this loan?
Yes some lenders offer balance transfer plus top up options.
What documents are needed?
KYC income proof car loan account statement and repayment track as well as banking.
What can I use this top up for?
Anything home repairs, wedding, business medical or debt consolidation.
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