Availing Top-up Loan on Your Home Loan

Availing a Top-up Loan on Your Home Loan

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11 Jan 2021

A top-up loan is an additional loan taken over and above your existing loan. A top-up on home loan is offered to existing loan borrowers to finance their need for additional financing. However, there are no restrictions on the end-usage of this loan, and it is not limited to renovating or remaking your house. You can use the loan funds to finance a wide variety of necessities. Generally, loan borrowers are approved for a top-up loan facility if they were disciplined with the EMI repayments on the existing loan.

What’s a Loan Top-Up Facility?

A top-up loan facility allows borrowers to get a certain amount of money on top of the current loan. A home loan top can be used to finance your home renovation, day-to-day financial necessities, business investment, etc. The amount can be used to finance home renovation expenses, day-to-day financial necessities, business investments, etc.

Benefits of a Home Loan Top-Up Facility

  • Quick Processing: Being an existing customer with the lender may contribute to faster housing loan application process.
  • Minimal Paperwork Required: The documents required for home loan verification may vary from one lender to another. To avail a top-up loan facility on your housing loan, you are not required to submit the documents all over again as the lender already has them.
  • No Restrictions on End-Usage: When you apply for a top-up loan on a housing loan, you don’t have to provide a reason to the lender, the loan funds can be used for any personal expenses like financing a home renovation, construction, or home expansion, etc.
  • Tax Deduction: If you avail a top-up loan to finance your home improvement expenses, then you can claim a tax deduction on the interest paid towards the loan as specified under Section 24 of the Income Tax Act.
  • Interest Rates on Home Loan Top-Up: Some financial lenders may offer a lower rate of interest and processing charges on the loan, ultimately lowering the financial burden of repaying the top-up loan. The rate of interest on home loan top-ups usually range between 7.15-11.2% p.a.
  • Loan Repayment Tenure: The loan tenure for home loan top-up cannot exceed the tenure of the primary loan. Thus, you have an option of choosing a loan tenure that is shorter or equivalent to the tenure of your existing housing loan.

When to Opt For a Top-Up Loan?

  • You can avail a top-up on your loan when you already have an existing housing loan account with the lender. Ensure that you have paid a stipulated amount towards your EMIs on your current housing loan.
  • You require additional finances instantly without the hassle of fresh documentation for a loan.
  • Top-up loans are ideal if you need funds to consolidate your debts instead of managing multiple loans.

Who can avail a Home Loan Top-Up?

Anyone with an existing Home Loan can avail a Top-Up Loan. Loan borrowers can even avail tax deduction benefits for the interest portion on a top-up loan. Most banks and financial institutions offer top-up on housing loans to their existing customers.

Housing Loan Eligibility Criteria

Given below are the basic housing loan eligibility criteria:

  • The applicant must be an Indian citizen to qualify for the loan.
  • To be eligible, the applicant must have a work experience of at least 03 years.
  • Individuals between 23 and 70 years of age are eligible for a housing loan.
  • Applicants with a CIBIL Score of over 650 and above are eligible for a housing loan.

Document Required For Home Loan Top-up

Mentioned below is the list of basic documents required for home loan top-up.

  • Identity Proof such as Aadhaar Card/Passport/PAN Card/Driving License, etc.
  • Address Proof such as Aadhaar Card/Passport/Electricity bill, etc.
  • Form 16 or your latest salary slip
  • Bank statements of the last 3 months

With Bajaj Housing Finance Home Loan at Finserv MARKETS, you can avail a high loan amount of up to Rs. 3.5 crore with a flexible loan tenure of as long as 360 months. The online application procedure for a housing loan is simple with minimal paperwork requirement.

So apply for a Bajaj Housing Finance Home Loan with the Finserv MARKETS app and fulfil a wide range of monetary necessities with ease. Get access to benefits like an additional Home Loan Top-Up of up to 50% of your sanctioned loan amount. By applying for a Bajaj Housing Finance Home Loan with the Finserv MARKETS app, you can track your loan status and even get instant approval on loans. You can also make use of the pre-approved offers and added services, like a free CIBIL score check and a Financial Health Check Report (FCHR), available online.

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”