Home Loan Top Up

What is a Top Up Home Loan ?


There are occasions when you have taken a home loan for a longer tenure and you find that you need some funds to perhaps renovate a portion of your home or add new accommodation to your home or extend your accommodation. You have satisfactorily serviced your home loan promptly without defaulting on any EMI payment. You have an impeccable record with your other loans and your credit rating is very high. If your loan has run for a sufficiently long period then your credentials can help you get a top up loan. The top up loan is usually the difference between the original loan amount and the balance principal outstanding in your loan account.

How does a Top Up Loan work ?


The top up loan can be decided based on the status of the existing home loan and the balance principal outstanding and the balance tenure. For instance, if your original loan amount was Rs 10,00,000, the balance tenure is 180 months, and the balance outstanding is Rs 8,00,000 you could opt for up to Rs 2,00,000 as the new loan subject to terms and conditions prevailing at Tata Capital. Top up loan is extended to existing borrowers with minimum 6 completed repayments. The top up loan is treated as a separate loan and runs concurrently with the home loan. The interest rate for top up loan is 1-3% higher than for home loan but significantly less than the interest rates for other types of loan such as personal loans.


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Benefit of a Top Up Home Loan


The benefit of a top up loan is simply that you can have extra cash in your hand to use it for any home improvement purpose.

Why choose a Tata Capital Top Up Home Loan ?


The main advantages of taking a home loan top up loan from Tata Capital are

  • Attractive interest rates higher than home loan interest rates but lower than personal loans
  • Top up loan amount is the difference between original loan amount and balance principal outstanding as on date of application
  • Tenure is usually limited to balance tenure with home loan and higher than for personal loans
  • Flexible EMIs
  • Processing is simple
  • Simple standard documentation

Tata Capital top up loans are easy and simple to avail with minimal formalities and quick processing.

Are there any processing fees and charges when you avail a Top Up Loan ?


The fees and charges on availing a top up loan are usually minimal as the top up loan is extended to home loan borrowers with a good history of repayment and all documentation is already available with Tata Capital.


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