What is a Home Loan Top-up?
A Top-up Loan is a handy refinancing option for borrowers who already have an ongoing Home Loan and would like to seek additional funding. A Home Loan Top-up can also be facilitated through a Home Loan Balance Transfer, wherein you transfer your Home Loan balance to Bajaj Housing Finance for a more competitive interest rate.
When you opt for a balance transfer, you have the option to avail of a Top-up Loan of Rs.1 Crore* or higher, based on your eligibility – giving you access to a sizeable loan sanction as well as letting you save on your total Home Loan cost.
The Top-up Home Loan sanction comes at a relatively lower interest rate compared to other unsecured loans. Further, it comes with end-use flexibility and can be used to meet any housing-related expenses. If refinancing is your priority, look no further than the Bajaj Housing Finance Top-up Loan.
Features and Benefits of a Top-up Loan
With a Bajaj Housing Finance Top-up Loan, here are the benefits that follow:
Loan Amount of Rs.1 Crore*
Top-up on your ongoing Home Loan with a sanction of Rs.1 Crore*, or even more. The amount will be sanctioned based on your eligibility.
Competitive Interest Rate
Eligible borrowers can get Home Loan Top-up interest rates as low as 7.75%* p.a. for salaried applicants along with other favourable terms.
End-Use Flexibility
As the loan amount comes with end-use flexibility, you can use it to address all housing expenses, such as home renovation.
Ease of Application
The process of applying for a Top-up Loan is hassle-free. Existing Home Loan borrowers or those who wish to transfer their Home Loan balance to us can apply for a Top-up Home Loan through our customer portal or Home Loan application form respectively.
Simple Eligibility Criteria
The eligibility criteria for a Top-up Loan will be similar to that of a Home Loan. This maximises your chances of availing of it.
Quick Processing and Disbursal
A Top-up Loan is offered to borrowers who have already availed of a Home Loan. If a borrower meets the eligibility criteria, they can stand a good chance to get approved for a Top-up Loan.
Eligibility Criteria for a Top-up Loan
If you have an ongoing Home Loan with us, the eligibility requirements for a Top-up Loan will be similar to those for a Home Loan. Besides these criteria, here are some important things to keep in mind when opting for a Home Loan Balance Transfer:
- When combining a balance transfer from another financial institution's Home Loan with a Top-up Loan, it is important to have a one-year record of consistent repayment.
- You should have completely paid off the existing mortgage for at least 6 months.
It is advisable that you clear any missed EMIs and ensure that there was no more than one missed payment in the previous year.
Please note that these requirements are general and may vary depending on the specific policies of the lender you approach for a Top-up Loan.
Documents Required for a Top-up Loan
To apply for a Top-up Loan with us, you will need to submit:
- KYC documents (Aadhaar Card, Voter ID, Passport, or Driving Licence)
- Passport-sized photographs
- PAN Card or Form 60 (mandatory)
- Latest salary slips and bank statements (salaried applicants)
- P&L statements, proof of business vintage, and ITRs (self-employed applicants)
Keep in mind that these are standard requirements. We may request additional documents during the application process.
Interest Rates and Charges for a Top-up Loan
With a Home Loan Top-up from us, you can benefit from attractive interest rates as compared to unsecured loans. It lets you address additional housing expenses not covered by your Home Loan with ease.
Eligible applicants who are salaried and professionals can enjoy a sizeable Top-up Loan sanction starting at just 7.75%* p.a. and repay the amount comfortably over the loan tenure.
To know more about our fees and charges for a Top-up Loan, click here.
The Rate of Interest for each loan is determined considering several factors which includes but not limited to, your profile including employment/profession type, age, industry segment and other details, your credit score, overall indebtedness and repayment track record as provided by Credit Information Companies (‘CIC’), cost of borrowed funds by the Company, credit and default risk in the related business segment in which you operate, historical credit performance of similar homogeneous clients, secured or unsecured loan being sought, ticket size/quantum of loan sought, tenure of loan, location delinquency and collection performance, your existing relationship with BHFL and repayment history, your declared and verified income, borrower group financial strength, nature and value of primary collateral security, etc. The above mentioned variables are considered as key underwriting variables for assessment and risk gradation. The aforesaid is dynamic and gets revised periodically as per the existence and performance of the past portfolio, and hence is subject to change.
Step-by-Step Process to Apply for a Top-up Loan
Before you start filling out the online application form, you can use our EMI calculator for Home Loan, to understand your monthly obligations. To apply for a Top-up Loan, follow these simple steps:
- Click on the 'Apply Online' button on the top right corner of this page. Alternatively, you can navigate to our housing loan application form.
- Provide basic details, such as your name and mobile number and select the type of employment.
- In the 'Select Loan Type' field, select 'Home Loan Balance Transfer + Top-up Loan'.
- Click on 'Generate OTP' to verify your mobile number and enter it in the required field.
- Enter the loan amount you require and choose the ideal repayment period.
- Input your personal, employment, financial, and property-related information.
- Submit the application.
Once you have submitted the form, you can expect to be contacted by our representative within 24 hours* of submitting your application. They will reach out to you to discuss the next steps and provide further guidance.
*Terms and conditions apply.
Top-up Loan: FAQs
A Home Loan Top-up is a useful refinancing option for those who already have a housing loan. It allows you to borrow a certain amount over and above your existing Home Loan balance. Unlike a regular Home Loan, a top-up comes with flexible end-use. You can use it for housing-related needs such as home renovation, repair, or remodelling.
The interest rates of Top-up Loans are usually lower than unsecured loans, making them better choices for those with an existing Home Loan.
If you have an existing Home Loan with Bajaj Housing Finance, you can avail of a Top-up Loan. You can also avail of it through a Home Loan Balance Transfer, wherein you can transfer your Home Loan balance to Bajaj Housing Finance for a more competitive interest rate.
You will need to provide basic documentation to avail of a Top-up Loan. This includes documents for KYC verification such as an Aadhaar card, voter ID card, passport and driving license, and recent photographs. PAN Card or Form 60 are mandatory documents.
Salaried applicants will need to furnish their latest salary slips and account statements for income proof. Self-employed applicants need to furnish their latest P&L statements, ITR, and proof of business vintage.
Note that these requirements are indicative and lenders may ask for additional documents.
When you have an existing Home Loan, you can avail Top-up Loan of Rs.1 Crore* or higher by transferring your Home Loan balance to us. However, you need to meet the eligibility criteria to avail of a Top-up Loan.
Top-up Loans come with lesser rates of interest and longer tenures. You can avail of a Top-up Loan from Bajaj Housing Finance to address any housing-related expenses such as home renovation.
Home Loan Top-up starts from as low as 7.75%* and can go up to 10.40%* for salaried and professional applicants.
Yes, you can claim tax benefits on a Top-up Loan under the old tax regime, depending on the purpose of the loan and the type of property. If you use a Top-up Loan for a self-occupied home, you can claim a deduction of up to Rs.30,000 per year. For a let-out property, there’s no upper cap under Section 24(b). This means the full interest amount may be claimed. When the loan is used to construct or buy a new property, both interest and principal may be claimed under Sections 24(b) and 80C, respectively. However, if the funds are used for renovation, repairs, or alterations, only the interest component qualifies for deduction, not the principal.
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