Everything You Wanted to Know About Top-up Loans-Banner_WC

Banner-Dynamic-Scroll-CockpitMenu_HomeLoan

Everything You Wanted to Know About Top-up Loans _WC

6 min 20 Feb 2023
All About Top-up Loans
Highlights
  • What Are Top-up Loans?
  • Features of Top-up Home Loans
  • Eligibility Criteria for a Top-up Loan
  • Benefits of Top-up Loans
  • How Can You Apply for a Top-up Loan

What is a Top-up Loan?

A top-up loan is a loan option extended by lenders to existing borrowers who already have a Home Loan or opt transfer their Home Loan balance. Top-up Loans enable borrowers to access extra funds over their current loan amount without the necessity of a separate, lengthy application. The eligibility for a  Top-up Loan Loan is generally contingent on the borrower's repayment history and the current market valuation of the property. These loans often come with competitive interest rates and can be used for additional housing purposes, such as home renovations.

Features of Top-up Loans

Top-up Loans come with several beneficial features such as: 

Competitive Interest Rates

Top-up loans usually have interest rates similar to existing Home Loan rates, or they may be a few points higher than the original loan rates. Even then, Top-up interest rates are comparatively lower than the rates of unsecured loans.  

Flexible Tenors

The maximum Top-up loan amount availed on a home loan can vary as per the lender’s policies and discretion. Generally, one may get funds worth Rs.1 Crore*, or higher, basis eligibility.

High Loan Amount

The maximum Top-up loan amount availed on a home loan can vary as per the lender’s policies and discretion. Generally, the net balance does not exceed 70%* - 80%* of the property’s value against which the original house loan was availed.  

Eligibility Criteria for a Top-up Loan

The Top-up loan eligibility parameters on a Home Loan may differ among lenders but the usual requirements are for salaried applicants typically are:

  • The applicant should be between 23 and 75 years** of age.  
  • Salaried employees should have a minimum work experience of three years
  • They should possess an excellent credit report and CIBIL score of 750 +

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

Benefits of Top-up Loans

A Top-up on your Home Loan extends the following advantages: 

  • A Top-up allows you to meet any housing requirement. 

  • It entails minimal documentation.   

  • Since you already have an existing house loan, the application process and eligibility parameters are less rigid. 

  • Top-up repayments are relatively easier due to lower interest rates and flexible tenors. 

*Terms and conditions apply. 

Blog-Intro-Disclaimer

DISCLAIMER:

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.

Asset Publisher

Trending Articles
alt
home+loan Home Loan

[N][T][T][N][T]

How to Choose the Best Home Loan?
2023-08-09 | 4 min
alt
home+loan Home Loan

[N][T][T][N][T]

Advantages for First-Time Home Buyers
2023-07-14 | 4 min
alt
home+loan Home Loan

[N][T][T][N][T]

A Complete Guide for Home Loan Insurance
2023-04-03 | 4 min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

5 Benefits of Using Area Conversion Calculator
2023-02-14 | 6 min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

What Is the Difference Between Gold Loan and Loan Against Property?
2023-03-02 | 6 min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

Understanding the Fees & Charges on Your Loan Against Property
2023-02-14 | 6 min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

Understanding the Fees and Charges on Your Loan Against Property
2023-02-16 | 8 min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

Things to Do If Your Loan Against Property Application Gets Rejected
2023-02-14 | 5 min
alt
home+loan Home Loan

[N][T][T][N][T]

A Guide to Statutory Liquidity Ratio
2023-02-22 | 5 min
alt
home+loan Home Loan

[N][T][T][N][T]

All You Need to Know About Home Loans
2023-01-19 | 5 min

Call_And_Missed_Call

RHS-insurance-ad-card

RHS Ads