Building their own home is a dream for many people in India. Many people in India put up their life savings to build their dream house. However, in the difficult financial situation of a family, many people will take a loan on their own homes. If the loan amount becomes insufficient then comes into the picture of home loan top-up.
A home loan top-up is an additional loan amount that a customer can take on top of the existing home loan this is called a home loan top-up. Basically, this top-up loan amount will be on top of the existing loan, no need to provide any extra security for it.
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Why you need to take top-up loans
There are several factors which will directly tell you to take a home loan top-up rather than taking any other kind of loan
- Interest rates will be lower compared to personal loans
- Processing fees are less
- Repayment period similar to that of an existing home loan
- Will help save taxes from the government by showing the top-up loan
Trending Home Loan Top Ups 2023
| Sl.NO | Bank Name | Interest Rate ( p.a. ) |
|---|---|---|
| 1 | HDFC Home Loan Top UP | 8.30 – 9.15% |
| 2 | SBI Home Loan Top Up | 7.90 – 10.10% |
| 3 | Axis Bank Home Loan Top UP | 7.75 – 8.40% |
| 4 | Union Bank Home Loan Top UP | 6.80 – 7.35% |
| 5 | Bank of Baroda Home Loan Top UP | 7.45 – 8.80% |
| 6 | Citibank Home Loan Top UP | 6.75 % |
| 7 | MahaBank Home Loan Top UP | 7.55 – 8.55% |
Eligibility criteria for Top Up loan
- Have a good credit score
- Have valid home documents
- Regular repayment of existing home loan monthly
- Ready to afford monthly EMI’s on top of existing one
Documents Required
- PAN Card
- Aadhar Card
- Passport Size Photo
- Latest Salary Slips
- Past 6 months’ bank transaction
- Valid Home property document
Advantages of Home loan top up
- Easy and Quick Process
- Low rate of interest
- Less documentation
- Better repayment options
- Get a loan without any additional security
- Eligible for tax benefits
Disadvantages of Home Loan Top up
- Increase in the debt burden
- Need to pay process fees
- If something goes wrong, it will be a burden on your head
Additional Tips for a Home Loan top up
- Always pay existing home loan EMI on time
- Maintain a good credit score before applying
- Ready to bear the additional debt burden
- Read properly banks terms and conditions
- Need to know that top-up loan will impact your overall credit score
- Make sure that ready to pay a monthly EMI which is higher than the existing one
Conclusion
Home loan top-ups are an easy and quick process to avail loans from banks. This will usually reduce lots of documents submission and will get the loan amount at low-interest rates compared to any other kind of loan category. So before taking into home loan top, please do check out the terms and conditions, and pros and cons of home loan top-ups.
