In times of financial need, it is common to take a loan. If you are already servicing a home loan, your best option is often to take a Top-up Loan meaning a loan that is taken over and above your existing home loan. While you can take a different loan, such as a personal loan, the terms may be less affordable and take more time to apply for. This is because the documents required for a top up loan are minimal in comparison to new loans as the lender already has all your details with respect to your existing home loan.
Bajaj Housing Finance Limited offers top-up loans when you carry out a home loan balance transfer as well. What is a Top Up loan? It is a loan to you in addition to your existing home loan. You can think of it as an extension of your home loan, however, without the home loan’s spending restrictions attached. So, you can use it for a wide range of purposes, while enjoying cost-effective interest rates.
Now that you know the top-up loan meaning, learn about it in more depth and understand its main features.
Suppose you took a Home Loan of Rs.80 lakh from a finance company for 20 years. After 10 years the outstanding amount is Rs.48 lakh, and you would be eligible for a top-up loan. Top up loan eligibility basically requires you to be a creditworthy existing home loan borrower who has paid EMIs on time for a certain period of time.
How much top-up loan can you get? This depends on your lender, but generally, the top-up loan and the outstanding home loan combined will not exceed 70-80% of the property’s value.
Here is a snapshot of the main top-up loan features.
Since you are an existing customer, obtaining a top-up loan may require you to submit no new documents, since your lender already possesses documents such as:
An updated bank statement indicating your existing home loan payments is an important document required for a top up loan. Before you apply, get information about the documents required for Home Loan that you need and submit them at the earliest to speed up the approval process.
In case of a home loan balance transfer and a top-up loan, you may need to submit basic KYC and property-related papers.
Having seen what is top up loan, opt for this provision should you require funds and avail the top features it has to offer!
Home Loan Eligibility Criteria
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Home Loan Balance Transfer
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Last update on 11-Mar-2021
Now know your Home Loan Eligibility
Get additional top-up loan with Loan against property balance transfer
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