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Home Loan Starting 6.65%*


What is Top-Up Loan?

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.

Example of What is Top Up Home Loan

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.

Features of Top-Up Loan

Here is a snapshot of the main top-up loan features.

  • High Loan Amount: You can borrow up to a high percentage, 70-80%, of the property’s market value.
  • Long Tenor: You can repay the loan over an extended timeframe, 10-20 years, or over the balance period of the existing home loan.
  • Low Interest Rate: The top-up loan interest rate is only a few points higher than that of your existing home loan.
  • Easy Utilisation: Top-up loans can be used for housing purposes such as furnishings, electronics and more as well as other purposes like personal needs, medical expenses, or higher education.
  • Quick Funding: Being an existing home loan customer, approval for a top-up loan is easy, and based on your repayment history. Disbursals are thereby speedy too.
  • Annual Tax Benefits: Tax deductions are available on top up loans, as per the limits of Section 80C and 24B, if the funds are used for purchase, construction, alterations, renovations, and repair. There are conditions here, so do consult your CA.


Document Required for Top up Loan

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:

  • KYC
  • Address proof
  • Income proof
  • Property papers
  • Business proof
  • Bank statements

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!