The Complete Guide to Getting A Home Loan Top Up

Improved real estate sector, fairly stable prices and low rates of interest have contributed to the increased demand for home loans among genuine homebuyers. However, a new property includes several other costs like infrastructure, interiors, small constructions, etc. Customers can finance these effortlessly using a home loan top up. HFCs offer tools like top up loan calculator to precisely evaluate the estimated EMIs. 

What is a top-up loan?

Top-up loans are additional credit provided over and above an existing home loan to refinance various needs. One noteworthy advantage is that top-ups have no end-use restriction. These can be utilised for any purpose, unlike housing loans which are specifically for the purchase or construction of a house. Most companies provide online top up loan calculator.The same tool will also display the top up loan amount one is eligible for. Upon providing correct data, the calculator will instantly display the final loan value and the amount saved with this facility.

The additional credit is available when a borrower has an ongoing home loan and opts for home loan balance transfer. Balance transfer is the facility to shift outstanding credit from the current lender to a new lender. This signifies closing of the existing loan account and opening a new one with new features. Some of the many benefits of a home loan balance transfer include comparatively low interest rates, better terms and conditions, easy repayment, etc.

Some more advantages of top up loans 

  1. With a top up loan, borrowers pay the same interest rate that is applicable on the existing home loan. Some housing finance companies may even offer a lower rate.
  2. Individuals need not go through complex documentation process. Barely one or two papers would be sufficient to sanction the fund. 
  3. Depending on the terms and conditions of the HFC, top up loans can be even used for business and personal purposes. 
  4. The Indian Income Tax Act, 1961 allows borrowers to enjoy tax benefits under several sections on the home loan top up if the fund is used in the construction or renovation of the property.

Utility of online calculators – balance transfer and top up loan 

Borrowers can assess the potential savings on the home loan balance transfer facility and benefits with the help of online top up and home loan balance transfer calculator. This easy-to-use tool requires only basic information like lender detail of existing loan, location of property, date, current tenor, total amount sanctioned, etc.

How to apply for top up on home loan?

The process of housing loan application is simple. However, the prerequisites include opting for balance transfer facility and paying a certain number of EMIs towards the existing credit. Once eligible, borrowers must follow the steps below: 

  1. Visit the official website of the loan provider 
  2. Click on ‘Apply Online’ and provide the necessary details 
  3. Complete identity verification through OTP that will be sent to the registered mobile number
  4. Next, provide the loan amount required along with a suitable tenor 
  5. Then, enter relevant information related to financial, personal and property-related facts 
  6. Once done, submit the application online. 

Usually, authorised representatives of loan providers get in touch within 24 hours of application. This makes the top up loan perfect to fulfil urgent financial needs effectively. 

Additionally, you can also look for pre-approved offers that make the process of taking loans simple and less time-consuming. Such schemes are available on several financial products, including such as loans against property, home loans, and more. Borrowers can simply provide their name and contact numbers to check their pre-approved offers.  

Using an online top up loan calculator, thus, makes sense as it helps in determining the additional amount borrowers are eligible for. It enables them to try different combinations of interest rates, loan amounts and tenor to choose the most suitable scheme as per their financial capability. With all the options available, it is time to make an informed decision and plan the repayments accordingly.

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