After availing a home loan, an additional amount might be required for meeting other requirements related to the house. This is when a Home Loan Top Up facility comes to the aid of borrowers looking to meet additional expenses related to needs like home improvement/construction/purchase or other personal economic exigency.
What is Home Loan Top Up?
A home loan top up is an additional loan amount that a borrower can avail over and above the existing home loan. The maximum loan amount and the tenure available under the top up loan product vary from lender to lender. Customers have the flexibility to avail top-up loan from the existing lender or from a different lender through balance transfer.

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Home Loan Top Up Interest Rates
The table below shows the rates and charges levied by the leading banks on Home Loan Top Up.
Bank | Interest Rate | Processing Fee |
SBI | 8.60% onwards | 0.40% of the loan amount plus applicable GST |
HDFC Ltd. | 8.95% onwards | 0.50% of the loan amount plus applicable GST |
ICICI Bank | 8.60% onwards | Up to 0.50% of the loan amount plus applicable GST |
Axis Bank | 8.55% onwards | Up to 1% of the loan amount plus applicable GST |
Bank of Baroda | Applicable ROI on linked Home Loan + Strategic Premium + 0.50% | 0.25% of the loan amount |
Features and Benefits of Home Loan Top Up
Mentioned below are some of the features and benefits of Home Loan Top Up:
- Longer Tenure: Compared to a personal loan, there is an ease of repayment of the borrowed amount under home loan top up, with repayment tenure extending up to 20 years.
- Lower Interest Rate: The rate of interest offered under home loan is significantly lower than what is offered under a personal loan. Therefore, it is advantageous to choose a home loan top up in case of urgent need of funds. Let us compare the rates for some leading banks.
Bank | Home Loan Top Up Interest Rate | Personal Loan Interest Rate |
SBI | 8.60% onwards | 11.50% onwards |
HDFC Bank | 8.95% onwards | 10.75% onwards |
ICICI Bank | 8.60% onwards | 11.25% onwards |
Axis Bank | 8.55% onwards | 12% onwards |
- Higher Loan Amount: Under home loan top up, the financial institution provides the opportunity to avail a higher loan amount of up to Rs. 50 lakh. However, it is important to note that the sum of top up loan amount being offered and the outstanding home loan amount should be well within the limits specified under the bank’s policy.
- No Security Needed: As home loan top up is availed over and above the existing home loan, no additional security is
- Fulfill Various Needs: Top up loans can be used for various purposes, including meeting expenses related to marriage, education, business, home renovation/construction, etc.
- Tax Benefit: Home loan top up provides tax benefits of up to Rs. 2 lakh under Section 24(b) of the Income Tax Act,1961. However, customers are eligible to claim tax benefits only if the top up loan is utilized for home renovation or home extension.
- Swift Processing: Availing a home loan top up requires minimal time as no additional background check or documentation is required for processing.
Also Check: What is the maximum tax benefit on housing loan?
Eligibility Criteria For Home Loan Top Up
Generally, all existing home loan customers are eligible for home loan top up. But there are some critical factors that are taken into consideration while calculating an applicant’s eligibility for enjoying this benefit. They are:
- Should have taken a home loan
- Good track record of regular payments on the existing home loan
- Appropriate age and income of the applicant at the time of application
- Credit report of other loans, if any, should be in favor of the borrower
How to Apply for Home Loan Top Up
To apply for Home Loan Top Up, visit the official website of the existing lender and apply for a top up loan under the Home Loan category. You can also avail home loan top up by physically visiting the nearest branch office of your existing lender. However, before finalising the lender for this facility, compare the interest rates and margins for various lenders in order to get the best deal and offer.
Also, to avail home loan top up from a different lender, first apply for home loan balance transfer with the new preferred lender.
FAQs
Q1. What is the tenure of a top-up loan?
Ans. The maximum tenure for a home loan top up might go up to 20 years.
Q2. What is the maximum amount available under a top up loan?
Ans. The maximum amount offered under a top up loan varies from lender to lender. However, it is important to note that the top up loan amount being offered and the outstanding home loan amount should be well within the limits specified under the bank’s policy.
Q3. Can I take a top up loan from another provider instead of my existing home loan provider?
Ans. Yes, it is possible to avail a top up loan from another lender, but before availing it, you will have to opt for balance transfer from existing lender to the new lender.
Q4. How do I check the total interest cost for my home loan?
Ans. You can determine the total interest cost with the help of Paisabazaar Home Loan EMI Calculator.