Updated: Aug 18, 2022, 14:28 ISTShare:
Features:
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Quick and easy approval
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Can cover for different expenses
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Attractive interest rates
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Available for a long tenure
Products for which you can get a Top-Up Loan
Top-Up on a Home Loan:
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Approval: Preapproved
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Disbursal: Instant
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Tenure: Up to 10 years
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Simplified documentation
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verdraft facility available.
Top-Up on a Personal Loan:
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Attractive interest rates
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Loan amount: Up to Rs 25 lakh
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Collateral: No security or collateral needed
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Simplified documentation
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Quick processing and disbursal.
Top-Up on a Car Loan:
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Attractive rates of interest
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Simplified documentation
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Quick processing and disbursal
If you have an existing loan with a bank, you can opt for a Top-Up Loan. It is a convenient way of raising money, to meet personal or business expenses.
How do your EMIs affect Top-Up Loan eligibility?
Already have an existing loan from a bank? You can get a Top-Up Loan to meet additional financial commitments.
How EMIs impact Top-Up Loan eligibility?
Your eligibility for a Top-Up Loan is negatively impacted by:
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Track record of late EMI payments
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Missed or overdue EMIs.
Which loans are eligible for a Top-Up?
You can get Top-Up Loans on
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Home Loans
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Loan Against Property.
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Personal Loans
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Auto Loans
What is the interest rate on a Top-Up Loan?
The interest rate of a Top-Up Loan may be equal to the rate on your existing loan or <0.25>% to <1>% higher, depending upon the customer profile and CIBIL Score.
Factors determining Top-Up Loan interest rates:
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The interest rate on the existing loan
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The amount of the loan
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The bank's policy
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Your eligibility
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Your relationship with the bank
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Your credit profile.
The interest rate of a Top-Up Loan can be the same as or slightly higher than the interest rate on your existing loan. It’s a good idea to know the factors determining the interest rate.
What are the factors affecting the Top-Up Loan interest rates?
Which factors impact the interest rate on the Top-Up Loans?
Top-up Loans usually have attractive interest rates. The rates differ, depending on the kind of existing loan and the lender.
Factors affecting the interest rates for a Top-Up Loan?
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Type of existing loan – Home Loan, Loan Against Property, Personal Loan or Auto Loan
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Interest rate of the existing loan – Top-Up Loan may have an interest rate equal to 0.25% to 1% higher
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our eligibility
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Your relationship with the lender
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The lender's policy
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Your credit profile – like credit score and nature of employment
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Loan details - like amount and tenure.
The interest rate of Top-Up Loans depends on the interest rate on your existing loan. Other factors influencing the Top-Up loan’s interest rate include your credit profile, eligibility, relationship with the lender and the lender's policy.
Top-Up Loan vs Personal Loan: Everything you need to know
You already have a Home Loan. However, you may need extra funds, either to make renovations in your new home or to meet personal or business expenses. Should you take a Personal Loan or a Top-Up Loan on your existing Home Loan?
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Top-Up on Home Loan |
Personal Loan |
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Secured Loan |
Unsecured loan |
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Lower interest rate than a Personal Loan |
Higher interest rates than a Top-Up on a Home Loan |
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Tax benefits for home extension or renovation |
No tax benefits |
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Available only on an existing loan |
Available at any time |
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Higher amount, up to Rs 1 crore |
Lower amount, up to Rs 25 lakh |
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Longer tenure, up to 10 years |
Shorter tenure |
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Fast approval and disbursal, as your documents are already with the lender. |
Longer processing time, due to fresh application and documentation. |
If you have a Home Loan, but need to meet other expenses, you can choose between a Personal Loan and a Top-Up Loan on your existing Home Loan. Know the difference to make a sound decision.
