Getting A Top-up Home Loan Is Easy With MoneyPlus!
Getting a Top-up home loan for a new home or property can be a hard and drawn-out process, but it doesn’t have to be. Let one of our home loan experts help you get a top-up loan with lowest rates, quick disbursement and hassle-free experience.
What are Top-Up Loans?
Sometimes, you need another helping hand to fulfil your dreams. How wonderful would it be if someone understands your aspirations and is always there to help you? One such product that fulfils the criteria is a top-up loan. The top-up loan is a financial help provided by banks or housing finance companies so that you can easily fulfil your dreams with little more financial aid.
Let us take an example to understand what actually a top-up loan is?
Suppose your bank has approved a home loan of Rs.75 lakhs for a period of 10 years. After 5 years, the outstanding principal balance on your loan is Rs.36 lakhs. Now, if you are considering a major renovation in the house, you can consider a top-up loan (a loan that tops-up your home loan), to finance the renovation instead of opting for a costly personal loan.
Top-Up Loan Meaning:
Top-up loan is a facility provided by banks, housing finance companies and other financial institutions that allows you to borrow a certain amount of money over and above your home loan.
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Get a Top-Up Loan
Can I get a home loan top-up for my house to be renovated?
Yes. You can get a home loan top-up for your house renovation.
What is the processing fee for a home loan top-up?
Additional processing fee is charged for top-up loans and differs lender to lender.
Is it possible to get a top-up on a home loan?
Yes. It is possible to get a top-up on a home loan.
Who can opt for a top-up home loan?
Anyone looking to buy a new home or renovate an existing one can get a top-up home loan.
Are there any additional documents required for a top-up on home loans?
Call one of our home loan experts at MoneyPlus to understand the documents required.
What's is the maximum amount that can be availed as a top-up loan?
There's a limit on the maximum amount that the lender would be willing to sanction.
Can I avail a top-up loan along with a balance transfer loan?
Yes. Top-up loan can be availed in addition to your balance transfer loan
Features of top-up loan:
Tenure: The top-up loans are either given for the outstanding period of the existing home loan or for a period of 15 years. The tenure changes as per the lender.
Interest Rates: The interest rates charged on top-up loan are slightly higher than what you pay for your home loans. This is still low compared to the interest rates on the personal loan.
Utilization: You can utilize a top-up loan for purposes of modification or construction of your house or to meet your personal expenses like funding for children’s education, etc. However, you cannot utilize the top-up loan amount for speculative purposes.
Home loan top up eligibility
The top-up loan (top-up loan of our web page) is not available to everyone who has availed a home loan from a bank. Several factors are taken into consideration before granting the top-up loan.
Few essential top-up loan eligibility factors to remember are as follows:
- Repayment track record in the last one year.
- In the previous year, there should have been no more than one EMI bounce.
- If an EMI bounced, it should be resolved before the next EMI is due.
- One year of clear repayment history is required for top-up loans combined with balance transfer home loans from other banks.
- Cibil score.
- Assets, as well as liabilities statements, are required.
- Age - 21 years to 65 years.
- Nationality can be resident or non-resident Indian.
- Profession should be a salaried or self-employed person.
Top-up loan income tax exemption
A top-up home loan is credible for availing of tax benefits. This is stated under section 80C and section 24 if the loan has been made use of to construct residential buildings or for the use of renovation of a particular property. If you have a receipt of proof, then you can directly write for the interest certificate issue. After this, the advantages of both section 80C and section 24 will be filed by the CA in your IT returns.
But, remember that the maximum claim you can make for compensation during a financial year is Rs.2,00,000.
- The way you use the funds decides the tax benefit on the capital return.
- If you are using the funds for the purchase or construction of a brand-new property, then the interest and the principal amount will be deducted up to the limits mentioned in Article 80C and 24
- But, in case you use the funds for repairs and renovation of your property, then no deduction will be made from the capital.
