Top up on Home Loan, Personal Loan Jul 2020

Last Updated 11th Jul 2020

Top up Loan – SBI, HDFC, All Banks

Loan Details Home Loan Top up Personal Loan Top up
Interest Rate 7.35 - 10.2% 10.75% onwards
Processing Fees 0.25% - 1% 1% - 3%
Loan Tenure Upto 30 years Upto 5 years
Processing Time 15 - 20 days 3 - 5 days
Prepayment Penalty Nil 2% - 5%
  • As per the current rates for 2020, lowest home loan top up rate is 7.35% and personal loan top up rate starts from 10.75%.
  • Borrowers can apply for top-up loans with their existing lenders or can choose to balance transfer their loan to another bank to avail lower interest rates, both on their current loan and the top up. Check Best Offers
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Top Up Loan

A top up loan means additional loan amount that you can avail on an existing home loan, personal loan or loan against property. You are eligible to apply for a top up loan only when you have made regular loan payments on your existing loans. You may apply for a top-up home loan or top up personal loan either with the same bank or another bank while doing a balance transfer. The rate of Interest on these loans are generally equal to or 0.25–1% higher than your existing loan rates. Top up interest rates on home loans are in the range of 7.6% to 11.2%. Similarly, for personal loans, top up loan rates are in the range of 11% to 23%. You may avail top up loan on home loan from some of the leading banks such as Axis Bank, HDFC, SBI etc as they offer loans at the lowest rate of 7.35%

Similarly, if you are applying for top up on personal loans, you may apply with one of these banks namely Axis Bank, ICICI Bank or HDFC Bank as they offer personal loans at interest rates starting from 10.75%. Avail a top up on your current home loan or personal loan online to get the best special offers and discounts.

You should consider a loan top up if,

  • You require urgent funds to meet your personal requirements.
  • You require immediate funds for your business expansion, marriage expenses, vacation etc.
  • You would prefer to take long tenure funds at low interest rates.
  • You already have an existing home loan, personal loan and property loan on which you have paid a stipulated number of EMIs.
  • You want to get a loan with minimal and no documentation.

Home Loan Top-up Interest rates

Banks Interest Rate-Home Loan Top-up
SBI Top up loan 7.9% - 10.2%
HDFC Top up loan 7.35% - 8.3%
ICICI Top up loan 8.6% - 9.4%
Axis Bank Top up Loan 7.7% - 9.25%

Based on a comparison of home loan top up interest rates of all banks in India, the interest rates on top ups on home loan are in the range of 7.35% to 10.2%. The top up rates are closely linked to the loan tenure and interest rate on the home loan already availed from the bank.

Personal Loan Top-up interest rates

Banks Interest Rate-Personal Loan Top-up
SBI Top up loan 11.3% - 16.4%
HDFC Top up loan 10.75% - 22%
ICICI Top up loan 10.75% - 22%
Axis Bank Top up Loan 10.99% - 16.99%

Based on a comparison of top up personal loan rates of all banks in India, the interest rates on top-ups on personal loans are in the range of 10.75%. Personal loan top up rates are extension loans that can be availed at the same rate at which the existing personal loan was availed, subject to prevailing market conditions.

Top Up Loan Eligiblity

To avail a Top-up loan you need to fulfill certain eligibility criterias, which are listed as follows:

  • You can avail a top up loan if you have an existing and running loan from a bank and the bank. Also,the bank should be willing to give you an additional loan on your existing loan as you have already repaid a certain portion of the loan and made all the payments in a timely manner.
  • You can apply for a top up loan from your existing lender or opt to apply for a balance transfer loan with top-up loan. This means you shift your loan to a new bank and avail a top up loan on your existing loan.
  • In either case, you can apply to the new bank after a minimum repayment track record of minimum 1 year of your existing home loan and upon possession or completion of the financed property.

Top Up Loan Calculator

While you avail a top up on your ongoing home loan or a personal loan, undoubtedly you remain in confusion about its repayment option as in what pattern does it follow while paying back the loan. In case you avail a top up on your current loan, you have to pay a single combined EMI for the existing loan as well as for the additional top-up taken on your present loan. Most of the financial institutions and leading NBFCs consider recalculating your top up loan EMI that you would be paying against your existing amount for the remaining tenure and the top up amount you have availed. Lowest EMI per lakh for home loan top up is Rs. 655 for 30 years.

Features of Home Loan Top-up

  • Interest Rates: Home Loan top up is available to existing borrowers against the property that has been mortgaged to avail home loan. You can get top up from the same bank or at the time of balance transfer to another bank.Interest rate on top up on home loans are slightly higher than home loan interest rate and is currently in the range of 7.35% to 10.2%
  • Loan Amount: Loan top up loan can be availed if you have an existing home loan. You can get top up either from the existing bank or can transfer your loan to another bank. Your top up amount depends upon the value of the property mortgaged and income of the customer. Top up loan amount being offered plus outstanding home loan amount should not exceed 70% of the market value of the property or top up amount should be availed within the limits specified by bank’s policy. The policies may vary from bank to bank.
  • Loan Tenure: Top up on home loan can be taken for a tenure upto 30 years depending upon the remaining period of your existing loan.
  • Tax Benefit: Tax benefit on top up loan can be availed under section 24 only if the top up is taken for home renovation or home extension. Other purposes are not liable for any tax exemption.
  • Processing fees on home loan top ups: You are liable to pay processing fee and other charges on home loan top up until and unless there is any special offer of nil processing fee in the bank. These charges may vary from bank to bank.
Key Banks for Top up on Home Loan

There are multiple banks offering top up loans on home loans. Key banks of top up home loan are as follows

SBI Home Loan Top Up
  • SBI Home Loan Top Up is available for existing home loan customers who are looking for more loans to meet their financial needs.
  • SBI home loan top-up loan allows the existing home loan customers to borrow additional loan amount above their existing home loan. The top-up over a home loan can be taken to meet urgent financial requirements. The bank charges an interest rate of 0.25 to 1.00 per cent higher than the current rates on a home loan. The interest rates charged on home loan top-up is much affordable in comparison to personal loans.
Who is Eligible?
  • Existing home loan borrowers are expected to have a satisfactory repayment track of at least one year.
  • Salaried and non-salaried home loan customers with a good cibil score can avail home loan top-up.
  • Home loan customers looking for additional loans can apply for SBI home loan top up.
SBI Home Loan Top Up Loan Amount Rate
Upto Rs. 20 Lakh 7.90%
Rs. 20 Lakh - 1 Cr 8.10%
Rs. 1 Cr - 2 Cr 8.30%
Above Rs. 2 Cr 9.95%

Interest rate on SBI Home Loan Top Up is 7.90% to 9.95%.

HDFC Home Loan Top Up
  • This facility can be availed when you need additional funds to meet your personal or professional requirements.
  • HDFC home loan top-up is an additional loan provided to the existing home loan customers over their home loan. The loan can also be opted by new home loan customers availing the balance transfer facility. This loan facility involves minimal documentation and can help home loan customers fulfil their personal or business needs. HDFC Home Loan Top Up allows a maximum borrowing of upto Rs. 50 Lakhs. One can apply for a top-up home loan after 12 months of the final disbursement of the existing home loan.
Who is Eligible?
  • Salaried and self employed who have existing home loan, home extension loan or home improvement can apply for this loan.
  • The applicants are required to have a good track record over the last 12 months.
  • The loan can be taken by existing HDFC home loan customers or new customers of home loan balance transfer.
HDFC Home Loan Top Up Loan Amount Rate Rate for women Borrowers
Upto Rs. 30 Lakh 7.35% 7.35%
Rs. 30 Lakh - 75 Lakh 7.35% 7.35%
Rs. 75 Lakh - 2 Cr 7.35% 7.35%
Above Rs. 2 Cr 7.35% 7.35%

Interest rate on HDFC Home Loan Top Up is 7.35% to 7.35%.

Axis Bank Home Loan Top Up
  • This loan can be taken for the construction of residential or commercial premises and for personal or business related requirements
  • Repay your loan upto a maximum period of 30 years
  • Maximum loan amount can be availed upto Rs. 50 Lakhs
  • Competitive Interest rates
Who is Eligible?
  • For existing borrowers, loan is taken after 6 months of clear repayments and there should be minimum 1 EMI bounce in last 1 year
  • Home Loan with balance transfer from other bank is approved after checking 1 year clear repayment record and for exisitng borrowers, 1 EMI bounce in last 1 year
  • Salaried and self employed professional and business men can take this loan
Axis Bank Home Loan Top Up Loan Amount Rate
Upto Rs. 10 Lakh 7.70%
Rs. 10 Lakh - 20 Lakh 7.70%
Rs. 20 Lakh - 30 Lakh 7.70%
Above Rs. 30 Lakh 7.70%

Interest rate on Axis Bank Home Loan Top Up is 7.70% to 7.70%.

ICICI Home Loan Top up
  • Can be availed for meeting home furnishing, marriage expenses, funding children?s higher education, holiday expenses etc
  • Avail loan amount up to 100% of originally sanctioned Home Loan
  • Tenure up to the remaining period of existing loan
  • Lower EMI and attractive interest rates
Who is Eligible?
  • Salaried and self employed professional and business men can take this loan
    ICICI Home Loan Top up Loan Amount Rate
    Upto Rs. 30 Lakh 8.60%
    Rs. 30 Lakh - 75 Lakh 8.65%
    Rs. 75 Lakh - 5 Cr 8.70%
    Above Rs. 5 Cr 8.70%

    Interest rate on ICICI Home Loan Top up is 8.60% to 8.70%.

    Eligibility Criteria for Top up Home Loan

    Eligibility would depend upon two factors:

    • Income of the borrower and ability to pay EMI’s - The total EMI burden should typically not exceed 65% of the net monthly income of the borrower. Longer tenures available on top up loans help lower EMI’s and result in higher loan amount eligibility.
    • Value of the property mortgaged – Banks typically lend upto 80% of the market value of the house at the time of sanctioning home loan. Over a period of time, the loan gets partially paid down with each EMI and the outstanding loan amount reduces. Thus, the effective loan-to-value (LTV) tends to reduce over time. Thus, the bank is able to offer you an additional amount on the security of the same property while still maintaining a comfortable LTV ratio.

    To explain it with an illustration, let us assume that you took a home loan of Rs. 40 lakh for 20 years at 10% when the property value was Rs 50 lakh. Say, you have been paying regular EMI’s of Rs. 38,600/- per month for the last 3 years. So, the principal outstanding after 3 years is Rs. 37,80,000/-. Further, over this period, assume that the market value of the property has grown at rate of inflation to Rs. 62 lakh. Thus, the LTV is down from 80% at the time of taking the home loan to 61% now. So, subject to income based eligibility, you can take a top up loan of upto Rs. 12 lakhs now. This money can be used for home renovation, buying another property, vacation, medical purpose, education, marriages or any other non speculative use.

    Features of Personal Loan Top-up

    • Interest rate: Top up personal loan can be availed if you have an existing personal loan. You can obtain top up either from the existing bank at existing loan rate or transfer your loan to another bank. You can get top up after 3 months of existing loan disbursement at the rates similar to the existing personal loan rates of 10.75% to 22%.
    • Loan amount: Most banks give top up of minimum Rs. 1 Lakh after paying 3 EMIs of existing loan.
    • Collateral: No security or collateral is required to get top up on personal loan
    • Loan tenure: Top up on personal loan can be taken for a tenure of 1 to 5 years depending upon the remaining period of your existing loan
    • Processing fee on personal loan top ups: Processing fee are charged by banks on personal loan top up as until and unless there is any special offer of nil processing fees from the bank
    Key Banks for Top up on Personal Loan

    There are multiple banks offering top up loans on personal loans. Key banks of top up personal loan are as follows

    HDFC Personal Loan Top up

    HDFC Bank top up loan can be taken if your existing loan is from HDFC or you want to transfer your loan to HDFC. Bank gives top up on personal loans at the rate similar to your existing rate on personal loans. Interest charged by HDFC on top up personal loan is 10.75% to 22%.

    SBI Personal Loan Top Up

    Top up on personal loan can be taken from SBI as the interest on top up is same to the personal loan rates. The rates SBI Top up personal loan are 11.3% to 16.4%.

    ICICI Personal Loan Top Up

    Top ur rates in ICICI Bank are similar to the existing rates of personal loan depending upon the offer in the market and the company you are working for. Current top up rates in ICICI are 10.75% to 22%.

    Axis Bank Personal Loan Top Up

    You can apply for top up personal loan in Axis Bank if you have existing loan from Axis or you are opting for balance transfer. The top up loan rates offered to you are 10.99% to 16.99%.

    Eligibility Criteria for Top Up Personal Loan

    Personal loan top up eligibility depends on various factors like

    • You have made all your repayments on time and there is no EMI outstanding
    • Job stability is an important factor as it defines your ability to repay the loan
    • CIBIL score to check that you have availed more loans or not
    • Borrower needs to fulfill the income criteria as specified by the bank

    If a new bank is offering a lower rate of interest than your existing bank then you should opt for balance transfer and top up otherwise apply for top up with your existing bank.

    Top up loan from existing bank vs. balance transfer with top up

    Banks offer lower interest rates same as home loan and personal loan on top up loan when availed with balance transfer of home loan and personal loan from another banks. So, it is advisable to check the top up loans interest rates with your existing bank and in case your bank doesn’t offer you the same rate, simply avail balance transfer of your loan through MyLoanCare and avail top up at normal loan rates.

    Loan Type Interest Rate
    Home Loan 6.85% - 7.1%
    Personal Loan 10.50% onwards
    Loan Against Property 8.15% onwards
    Gold Loan 9.90% onwards
    Education Loan 8.40% onwards

    FAQ - TOP UP LOAN

    How much top up home loan can I get?

    The amount of top-up home loans varies from bank to bank, depending on the income and repayment track record of the borrower.

    What is the benefit of a top up loan?

    A top-up loan is chosen over other mediums because it provides following benefits

    • Lower interest rate: The interest rate of top-up loans is much lower than credit cards, car loans, or personal loans.
    • Tenure: You can get a top-up loan for a longer tenure than car loans and personal loans.
    • Tax benefits: Borrowers can avail tax relaxations in case a top loan is used for the construction or extension of the property, education of a child, and home repairs.
    Can I get tax benefit on top up home loan?

    Yes, under sec 24 of the Income Tax, you can get a tax benefit on top-up home loan if you have taken a loan for home renovation or extension.

    What is SBI home loan top up?

    SBI provides top-up loans for a home to all the existing home loan borrowers at an interest rate ranging from 8.35% to 9.20%, provided that they have a good repayment record.

    How does home loan top up work?

    Top up loans for a home can be taken if borrowers have an existing running loan, and they need more funds for the house. The top-loan is also taken against the mortgaged property of the home loans. Banks provide top-up loans depending on the income level and repayment track of the borrowers. The interest rate for different banks varies from time to time, and presently, it ranges from 8.05% to 10.55%. This interest rate is higher than the current interest rate on home loans.

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