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Top up on Home Loan, Personal Loan Jun 2017

Last Updated 24th Jun 2017

Top up Loan – HDFC, SBI, ICICI, PNB, All Banks

  • Avail top up on home loan or top up on personal loan with the same bank or other banks at the time of balance transfer
  • Interest rates on top up loans are generally equal or 0.25 – 1% higher than your existing loan rates
  • Maximum tenure depends upon the remaining tenure of your existing loan
  • Use for business expansion, marriage, vacation, education, gifting, medical expenses, house renovation, purchasing another property
  • Apply online for top up at MyLoanCare and earn cashback upto Rs. 5,000
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Compare top up rates and offers available on Home Loan, Loan against Property and unsecured Personal Loan

Home Loan Loan Against Property Unsecured Personal Loan
Interest Rate 8.35% - 8.6% 9.25% onwards 10.99% onwards
Processing Fees 0.25% - 1% 0.50% - 2% 1% - 3%
Loan Tenure Upto 30 years and remaining tenure of existing home loan whichever is earlier Upto 18 years Upto 5 years
Processing Time 15 - 20 days including balance transfer to new bank 10 - 15 days 3 - 5 days
Prepayment Penalty Nil for individuals on floating rate loans Nil for individuals on floating rate loans 2% - 5%

A top up loan is an additional loan amount that you can avail on an existing home loan, personal loan or loan against property. Major Banks offering this facility is ICICI, HDFC, Axis Bank, IDBI Bank, Citibank, Standard Chartered Bank and many others.

Home Loan Top up

  • It 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 other bank. Top up loan 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 equal to prescribed bank’s policy and it may vary from bank to bank.
  • Top up on home loan can be taken for tenure of 5 to 30 years depending upon the remaining period of your existing loan.
  • Tax benefit on top up loan is available under section 24 only if the customer is taking top up for home renovation or home extension. Other purposes are not liable for any tax exemption.
  • Banks charge 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.

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, 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 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.

Personal Loan Top Up

  • Top up on 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 other bank
  • Most banks give top up of minimum Rs. 1 Lakh after paying 3 EMIs of existing loan
  • No security or collateral is required to get top up on personal loan
  • 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 and other charges are charged by banks on personal loan top up until and unless there is any special offer of nil processing fees from the bank.

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 new bank is offering low 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.

Interest Rate
Home Loan 8.35% - 8.6%
Personal Loan 10.99% onwards
Loan Against Property 9.25% onwards
Gold Loan 9.50% onwards
Education Loan 11.10% onwards
 Top Up Loan

*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.