Home Top up loan benefits, eligibility, and more.

Home Top up loan benefits, eligibility, and more.

A home top-up loan is an extra amount of loan taken on an already existing loan. Individuals usually opt for a top-up on loan for any emergencies or expenses such as education of children, renovating, or extending a house. Apply for a home loan top-up when you need additional funds on an urgent basis. A top-up on loan can be taken on long-duration loans such as personal loans and home loans. No security is required to get such a loan.

 

The method of applying for a house loan top-up is the same as a standard home loan. Documentation required for the home top-up loan is similar to that of a primary home loan, only the rate of interest is a bit more. To be eligible for the top-up home loan, one should first check their credit scores as it is offered by banks only to strong credit profile customers. Interest rates on top-up home loans begin at 7.10%. Processing fees can be up to 1% of the loan amount. 

 

Best Home Top-up loan Interest rates: 

 

Banks Interest rates
HDFC home top-up loan 8.30% to 9.15% p.a.
SBI home top-up loan 7.90% to 10.10% p.a.
AXIS home top-up loan 7.75% to 8.40% p.a. 
Union bank home top-up loan 6.80 % to 7.35% p.a.

 

Five points to keep in mind before applying for a top-up home loan:

 

A top-up home loan can be a great decision under the right circumstances when there is a requirement for additional funds on an existing loan. Following are some points that should be remembered while applying for a top-up home loan:

 

  • To be eligible for an additional amount of loan as a top-up, make sure you have paid the stipulated no. of EMIs on your existing housing loan.
  • The duration of such a loan differs from lender to lender, i.e., from 30 years to less than ten years; it depends on multiple factors such as income level, age, etc.
  •  Documents required to be submitted include proof of address, identity, income, etc.
  • Tax benefits can be availed if the loan amount is strictly used for home renovation and construction. 
  • Several factors related to credibility decide the maximum amount of loan one can borrow through a top-up home loan.

 

Benefits of a top-up loan:

 

Home loan top-up offers several benefits, such as tax benefits, minimal documentation, lower interest rates, quick processing, loan tenure, etc.

 

1) Minimal Documentation:

A top-up home loan requires very less documentation in comparison to the standard home loan. As this loan is offered to existing borrowers, there is no requirement for heavy documentation.

 

2) Quick Approval:

The lender may approve your application faster as you already have an existing loan with the lender. The loan is sanctioned as soon as the verification is complete.

 

3) Loan tenure:

The top-up loan tenure can never exceed the tenure of the primary loan. You can either choose the tenure equivalent to the existing loan or a shorter one.

 

4) The interest rate or charges:

Top-up home loans may charge you a lower amount of interest and processing charges as compared to primary home loans.

 

5) No collateral needed:

Since a top-up home loan is a form of unsecured loan, you need not provide any security against it to the lender.

 

6) No restriction on usage:

The amount borrowed through the top-up loan can be used for any purpose like renovation, construction of a home, medical emergency, etc. 

 

7) Tax Benefits:

If you are using the loan amount for renovation, construction, extension, or repair of the housing property, tax benefits can be availed. 

 

8) Consolidated EMIs:

Some lenders allow the borrowers to consolidate the EMIs. It means to merge the standard and top-up loan amount and pay it in a single EMI. Using this method, one does not need to remember the separate EMI amount and dates.

 

The eligibility criterion for a home top-up loan:

 

The criteria of eligibility vary from lender to lender. Two major factors should be kept in mind before settling for a home top-up loan:

 

  • One must have an already existing house loan with the lender to whom you are proceeding for the home top-up loan.
  • Check your CIBIL scores, credibility, and repayment history and decide whether you are financially stable to take up such a loan.
  • Age: 21 to 65 years.
  • Occupation: Salaried or Self-Employed.
  • Nationality: Resident or Non-Resident Indian.
  • No EMI bounce should be there for six months.
  • If the EMI is bounced, it should be duly paid with the next EMI.

 

Top-up loan Vs New loan:

 

Both loans have the same purpose, which is to provide financial aid. However, there are specific differences between the two.

 

  • To apply for an instant home loan, you need to upload all the required documents. Verification of the submitted documents is done to check eligibility. The application process for the top-up loan is comparatively faster as there may not be the requirement to submit all the documents.
  • The rate of interest for a new loan is comparatively higher than that of a top-up loan.
  • In the case of a top-up loan, there is no requirement for security or collateral as the borrower already has an existing loan with the lender.
  • Top-up loans are needed for additional cash requirements such as business expenses, personal expenses, miscellaneous expenses, etc. New loans are for a predetermined purpose. 
  • The tenure of top-up loans is as long as the primary loan; it may be shorter than the existing loan but cannot exceed the same. New loans are generally of longer duration.

 

In Conclusion:

 

Loans, whether it is top-up loans or standard loans, are to fulfil the financial needs of an individual. Apply for a home loan top-up when you are looking for immediate cash. Though these types of loans do not carry heavy documentation and high-interest rates, one must be aware of their need and usage.

Getting a home loan on top of an existing home loan can be burdensome sometimes. Ensure that you will be able to pay off the debt without hammering your financial health.

357 Comments

  1. Very good article, the sharing is quite interesting and useful to me. I have learned a lot from your post eggy car

  2. These are actually wonderful ideas in about blogging. You
    have touched some good points here. Any way keep up wrinting.

  11. I love your blog.. very nice colors & theme. Did you make
    this website yourself or did you hire someone to do it for you?
    Plz answer back as I’m looking to create my own blog
    and would like to know where u got this from. thank you

  27. My brother suggested I might like this blog.
    He was entirely right. This post actually made my day. You cann’t
    imagine just how much time I had spent for this info!
    Thanks!

  28. I’m excited to discover this website. I want to to thank you for your time due to this
    wonderful read!! I definitely liked every little bit of it and
    I have you saved to fav to check out new things on your web site.

  34. Let me give you a thumbs up man. Can I give
    my hidden information on amazing values and if you want to with
    no joke truthfully see and also share valuable info about how to learn SNS marketing
    yalla lready know follow me my fellow commenters!.

  144. I loved as much as you’ll receive carried
    out right here. The sketch is tasteful, your authored subject matter stylish.
    nonetheless, you command get bought an edginess
    over that you wish be delivering the following. unwell unquestionably come more formerly again as exactly the same nearly a lot often inside case you shield this increase.

  146. Thank you for the auspicious writeup. It in fact was a amusement account it.

    Look advanced to more added agreeable from you!
    However, how could we communicate?

  147. For most up-to-date information you have to go to see the web and on internet I found
    this site as a best site for latest updates.

  148. If some one desires expert view regarding blogging after that i suggest him/her
    to go to see this webpage, Keep up the good job.

  155. Thanks for finally writing about > Home Top up loan benefits, eligibility, and more.

    – AniMixPlay < Loved it!

  159. Excellent blog! Do you have any suggestions for aspiring writers?
    I’m hoping to start my own website soon but I’m a
    little lost on everything. Would you advise starting with a free platform like WordPress or go for a paid option? There are so many options out there
    that I’m completely overwhelmed .. Any tips? Many thanks!

  162. I think this is among the so much vital info for me. And i’m glad studying your article.
    But want to remark on few common things, The site taste is
    perfect, the articles is in point of fact excellent :
    D. Just right activity, cheers

  166. Hello, yes this piece of writing is genuinely pleasant and I have learned lot
    of things from it about blogging. thanks.

  167. Hi there, I discovered your web site by way of Google at the same time as looking for
    a comparable topic, your web site came up,
    it looks great. I have bookmarked it in my google bookmarks.

    Hello there, just became aware of your blog via Google, and located that it’s really informative.
    I’m gonna be careful for brussels. I will be grateful should you proceed this in future.

    Numerous people will likely be benefited from your writing.
    Cheers!

  168. I was suggested this blog by my cousin. I’m not sure whether this post
    is written by him as no one else know such detailed about my problem.
    You are amazing! Thanks!

  170. Hey! Do you know if they make any plugins to help with Search Engine Optimization? I’m trying to
    get my blog to rank for some targeted keywords but I’m not seeing
    very good results. If you know of any please share. Cheers!

  171. Have you ever thought about adding a little bit more than just your articles?

    I mean, what you say is important and everything. But think about if you
    added some great graphics or video clips to give your posts more,
    “pop”! Your content is excellent but with images and videos,
    this website could undeniably be one of the greatest in its niche.
    Terrific blog!

  178. Regardless if you’re a PC gaming loyalist or play across multiple consoles, you can spend your BTC on video games. Buy entire games, CS:Go skins, V-bucks for Fortnite, and everything else you need to step up your play. The BitPay Card is the easiest and simplest way to pay for games and accessories with Bitcoin. Use it on any platform that accepts MasterCard, including Steam, PlayStation, Nintendo, and Xbox. Alternatively, you can convert your crypto into gift cards for your preferred gaming network. Buy gift cards for Xbox, the PlayStation Store, Nintendo, Google Play, and GameStop. Download the BitPay Wallet app to start buying gaming gift cards. “A new investor should only apply a very low, single-digit percentage of their trading portfolio to cryptocurrencies. Despite the many bullish calls for Bitcoin or Ethereum, massive plunges have happened in minutes. New investors may want to consider buying and holding a basket of cryptocurrencies, with an approach of scaling into positions,” he says.
    http://knoxgkxk992.tearosediner.net/when-is-the-best-time-to-buy-bitcoin
    The fees associated with investing in Bitcoin and other cryptocurrencies via Deutsche Bank could differ depending on the platform you opt for. This might encompass various charges such as deposit, withdrawal, spread, and trading fees. Bitpanda comes highly recommended for Deutsche Bank users searching for a cost-effective alternative. By Reuters Staff Crypto Finance offers trading, storage, and investment in digital assets to institutional and professional clients. Thanks to the deal, in the moderate three-digit CHF million range, Deutsche Börse extends its offering for digital assets with a direct entry point for investments, including post-trade services such as custody. NOW READ: Fund managers still lured to crypto ‘because of the returns’ Kaiko collects tick-level trade data from over 100 Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) for both spot and derivatives markets and continuously adds new exchanges and new assets. Kaiko covers about 96 per cent of the tick-level trading data from various DEXs and includes a majority of blockchain protocols such as Ethereum or Avalanche. The tick-level trading data collected from CEXs comprises more than 150,000 instruments for spot and derivatives markets.

  200. Bookme has satisfied its customers with authentic online flight bookings for both domestic and international destinations. FULL STORY Cheap flights, hotels, rental cars and travel deals: Though traveling is the best way to gain novel experiences, financial constraints often come in the way. No matter what the reason for your travel, it is possible to find cheap international airline tickets if you keep an eye out on international flight booking offers. To find the cheapest possible flight to your destination, you need two things. 1.) to be flexible with your dates, and 2.) Check multiple flight aggregators. You can do this easily by using our robust, flexible date calendar, which gives you an idea of prices for the entire month or year. Then compare search engines on those days that the flights are cheapest (using our dashboard) and save even more of your ticket (even up to 20%). This strategy will practically guarantee you find the cheapest flight on earth.
    https://www.bookmarking-presto.win/top-most-airlines-in-the-world
    Hey, Marek. Defo don`t miss coming to Bulgaria. You`ll be pleasantly surprised. One of the reasons why it`s not so popular is the lack of tourist advertising, but virtually every international traveler I`ve been talked to had liked my home country and said there is a lot of value here for the money you spent. Cheers We knew Tallinn, Estonia, was a small capital city, relative to other capital cities in Europe, and it was here that we became experts in the cafes of Tallinn and its spots for photos. © 2023 Galvanized Media. All Rights Reserved. Bestlifeonline is part of the Dotdash Meredith Publishing Family. The beach has three separate parking lots, the first one being for windsurfing sports and a launching spot for kites. The second connects to the main beach spot, and the third has a boat ramp.

  312. My family members all the time say that I am killing my time here at web, but I know I am getting experience all
    the time by reading such fastidious articles or reviews.

  355. I’m not sure where you’re getting your information, but great topic.
    I needs to spend some time learning more or understanding more.
    Thanks for excellent info I was looking for this information for my mission.

  356. I’ve been exploring for a little bit for any high quality articles or
    weblog posts on this sort of space . Exploring in Yahoo
    I ultimately stumbled upon this website. Reading this info
    So i’m happy to exhibit that I have an incredibly excellent uncanny feeling
    I came upon exactly what I needed. I so much surely will
    make certain to don?t forget this site and give it a glance regularly.

Leave a Reply

Your email address will not be published. Required fields are marked *

2021 Puva is Proudly Powered by EnvyTheme