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Home loan Top up can be used for anything from buying furniture to construction, extending, or renovating your residential property. It is available for existing home loan borrowers without the requirement of any security or guarantee. Interest rates are lower and you can also claim tax benefits on your home loan top up. Lowest interest rates on top up home loan starts from 7.10%. The repayment tenures can be the same as that of the home loan. The maximum amount can depend on the balance outstanding amount of the home loan or a specific amount set by the bank. Processing fees can be up to 1% of the loan amount.
|HDFC Home Loan Top Up Loan||8.30% to 9.15% p.a.|
|SBI Home Top Up Loan||7.90% to 10.10% p.a.|
|Axis Top up Home Loan||7.75% to 8.40% p.a.|
|Union Bank Home Loan top Up||6.80% to 7.35% p.a.|
|BoB Home Loan Top Up||7.45% to 8.80% p.a.|
|Citbank Top Up Exist Home Loan||6.75% p.a.|
|MahaBank Top up for Home Loan||7.55% to 8.55% p.a.|
Compare: Current Home Loan Interest Rates
A home loan top-up are loans that are offered by banks to existing home loan borrowers. While some banks have conditions stating that the top-up loan should be used only for home-related purposes, there are banks that don’t have such restrictions.
Home loans Top-up have a number of benefits such as:
Tax benefits on home loans top-up can be claimed if the loan has been used only for the purpose of construction, renovation, extension, or repair of a residential property. The maximum Tax Deductions available is up to Rs.30,000 if the top-up loan has been used for a self-occupied home. If the loan has been used for a let-out property there is no limit on the deduction. However, both of these come under the overall total tax deduction of Rs.2 lakh per year that is available on the interest component of home loans.
If the top-up loan has been used for purchasing or constructing a new property, the principal and interest component of the top-up loan will be eligible for tax deduction which is subject to the limit prescribed under Section 80C and 24 (b). However, if the home loan top-up is used for the renovation, alteration, or repair of residential property, the deduction can only be claimed for the interest component of the loan and not the principal component.
It is important to preserve the receipts and documents of all the work done on the residential property with the top-up loan in order to claim the tax benefits.
The eligibility criteria for the home top-up loan will be the same as the criteria for the home loan of the bank that you are applying for or from which you have already availed a home loan. This can vary from bank to bank. However, some of the important points to keep in mind are the following:
The general criteria, which is the same as for home loans, is as follows (which can vary from bank to bank):
There are many ways to apply for a top-up home loan, depending on the bank you are applying from. However, the common ways you can apply for a top-up loan are the following:
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