Getting rid of the hassles of living in rental accommodation, and moving into one’s own house offers immense satisfaction. Though, due to the rising prices of residential properties across the country, a Home Loan is a must bet to finance your purchase.
While Home Loans are available from all leading banks, NBFCs, and other financial institutions at economical interest rates in our country, still, you are required to pay the margin money from your pocket. Then, there are expenses related to stamp duty, registration charges, property tax, etc. which can leave anyone in a financial crunch when planning to buy an abode. Well, your financial health need not be this worse. You can indeed leverage your Home Loan and avail a Home Loan Top Up from your lender.
A Home Loan Top Up is an additional amount that you can avail against your Home Loan. This loan amount is over and above your existing loan. Select financial institutions offer this facility by extending the mortgage against your property. You are eligible for a Top-Up Loan only when you have been regular with your EMI payments.
When you are looking for a Home Loan Top Up, you are free to apply with the same lender from which you have taken the Home Loan or can also seek the facility from another lender while Opting for Home Loan Balance Transfer.
The money availed through Home Loan Top Up can be used for any financial requirement that you have. There is no need to inform the financial institution regarding the usage of the funds. It is a preferred option over a Personal Loan because the rate of interest is much lower and there is the availability of an extended repayment tenor.
If you are thinking about availing a Home Loan Top Up, you can opt for this facility with the existing financial institutions or seek it from the other lenders while opting for a balance transfer.
Multiple banks and NBFCs offer the facility of mortgage top-up in India. Following are the best Home Loan Top-Up options available to you in 2020.
|Factor||SBI||HDFC||Axis Bank||Bajaj Finserv|
Rate of Interest
8.90% to 9.40%
8.70% to 9.20%
8.55% to 11.75%
8.55% to 10.30%
Depending on property value. (Minimum Rs. 20 Lakh can go up to 5 crore &more)
Maximum Rs. 50 Lakh
Maximum Rs. 50 Lakh
Up to Rs. 50 Lakhs.
Up to 30 years
Up to 15 years
Up to 15 years
Up to 20 years
(minimum Rs. 2,000 or maximum Rs. 10,000) + taxes
0.50% or Rs. 3,000 (whichever is higher)
1% or minimum Rs. 10,000.
0.80% to 1.20%
These are five of the best options available if you are looking for a Home Loan Top Upin 2020. Following is a detailed analysis of the offerings to help with your decision.
It is a leading public sector bank that offers you top up against your existing Home Loan. The major aspects of SBI Home Loan Top Up are: –
The rate of interest varies according to the amount availed as well as the employment situation of the applicant. The Rate of Interest for SBI Home Loan Top Up starts from 8.90% p.a. and goes up to 9.40% p.a.
SBI offers the highest amounts as top up, which are directly linked to the value of the property. There is no limit on the maximum amount, and it can go beyond Rs. 5 croreas well.
The maximum repayment tenor available herein is one of the highest in the market, i.e. up to 30 years or remaining tenor of the Home Loan.
Existing SBI Home Loan customers, as well as balance transfer customers, are eligible to apply.
The biggest private sector bank in India, HDFC Bank offers the Top Up facility to its HDFC Home Loan customers as well as balance transfer customers.
Rate of Interest against Top Up Loan from HDFC Bank is connected to the RPLR. The Interest rate starts from 8.70% and goes up to 9.20% p.a.
The maximum amount available against HDFC Home Loan Top Up is Rs. 50 Lakh.
Maximum repayment tenor available against Home Loan Top Up is 15 years. There are no prepayment charges applicable to individual borrowers.
Existing HDFC Home Loan customers, as well as balance transfer customers, are eligible to apply.
One of the most prominent private sector banks in India, Axis Bank offers the facility of top up at attractive interest rates.
The Rate of Interest for Axis Bank Home Loan Top Up varies between 8.55% to 11.75% p.a. depending on the profile of the customer.
The maximum amount available herein is Rs. 50 Lakh, which can be used for any purpose by the customer.
The maximum repayment tenor available is 15 years.
Existing Axis Bank Home Loan customers, as well as balance transfer customers, are eligible to apply.
The leading NBFC of India, Bajaj Finserv also offers Home Loan Top Up for its customers with great features: –
The rate of interest starts from 8.55% and goes up to 10.30% p.a., depending on the profile of the customer.
The maximum amount available as a Home Loan Top Up from Bajaj Finserv is Rs. 50 Lakh.
The repayment tenor available to customers is 20 years or the remaining tenor of the Home Loan, whichever is greater.
Existing Bajaj Finserv customers, as well as Balance Transfer customers, are eligible to apply.
With a host of benefits, Home Loan Top Up is an excellent option to meet your urgent financial requirements.
Also Read: Pros and Cons of a Home Loan Top Up
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