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March 30, 2023

Top up on home loan – Everything you must know before applying!

Many people in today’s society dream of purchasing property. People seek for a house loan to turn this desire into a reality after putting in a huge amount of effort to choose the ideal property and do good financial preparation.

After making a down payment, the property buyer starts paying back the loan balance in equal monthly installments (EMI). Despite having a home loan, people could occasionally need more money. Numerous financial organizations offer a top-up on home loan for their current clients in such circumstances. This home loan top-up may quickly lower the immediate cash requirement.

Consider choosing a quick top-up on home loan if you are simultaneously applying for a house loan and require additional funds.

What is a top-up on home loan?

A top-up on home loan is an extra loan made on top of your existing mortgage. This extra cash can be utilized for a variety of things, including home renovations, business growth, unanticipated medical costs, travel, and education. This additional amount can be repaid by slightly increasing your EMI.

Numerous financial institutions offer alluring house loan characteristics, which makes choosing a top-up Housing Loan advantageous for you.

Instant Home Loan Top-Up – Benefits

Minimal Documentation

 The application and approval process for a top loan is rather straightforward. You don’t have to go through drawn-out procedures to gain immediate access to money. Several banks have completely digitized their workflow.

Reduced interest rates

The category of “secured loans,” which includes home loans, often has lower interest rates. The rate of interest on the extra money will therefore remain low if you pick a quick Home Loan top-up. It might not cost much more than your current loan.

Increased Loan Amount

When you make regular EMI payments and also have repaid a sizable sum, your chances of receiving a greater top-up loan amount rise. Before granting the top-up loan, the lender will double-check your credit rating.

Extended Repayment Period

The payback period will be substantially longer for a home loan top-up than for a personal or company loan. For instance, if your current mortgage has a length of 15 years, you can apply for a top-up home loan for a shorter or equal term. Longer repayment terms might help you strategically organize your finances and reduce the burden of spending by lowering the EMIs. A top-up loan will run concurrently with an existing mortgage for up to 15 years.

Speedy processing

Fast processing is one of the main advantages of a top-up loan for a house loan. Applicants may submit an application for a pre-approved top-up loan at many financial institutions. The documentation needed to apply for the top-up housing loan is simple. The immediate Home Loan top-up is often granted within a few days.

Multiple Uses

 A top-up loan has a lot more usage options. The money can be used for a variety of costs, including remodeling, building, fixing, and decorating. The institution does not impede your use or expenditure of the money.

Tax Advantages

According to the restrictions of Sections 24B and 80C, tax deductions may be permitted if the top-up home loan is used for the purchase, building, renovations, and maintenance. For further information, consult your financial counselor.

What should you consider before applying for a Home Loan Top Up?

Here are a few things to keep in mind.

  • The rate of interest for a top-up house loan is essentially the same as or just a little higher than the rate of interest for a home mortgage. However, due to its speedy and straightforward method, the former can still be a suitable choice.
  • Top-up loans are typically used for home remodeling, furnishing, and redesign.
  • Top-up loans have terms of up to 20 years, or until you pay off your initial loan. Taking into account your age, income, the type and value of your property, and other factors, the lender determines the exact period.
  • Less than 70% of the property’s worth should be left after subtracting the top-up loan from the original loan amount.
  • Tax advantages are available for the home loan to up.


The demands on your time are increasing as life changes. Thankfully, numerous financing choices can be used to pay for these increasing expenses. One of these, a house loan, maybe the ideal approach to pay for a home’s bills. However, you might choose a home loan top-up if you go over your budget and require more money to equip, repair, or decorate your home. This can be much easier and more convenient for you than applying for a second loan.

The best approach to meet your extra financial needs is unquestionable with a top-up home loan. It is quick, simple, and simple to reach. Additionally, you can use it for balance transfers. Overall, it’s a great choice to make sure everything goes as planned and you may take pleasure in your lovely property without having to worry about money.

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