Home Loan

All You Need to Know About Top-Up Loans in India


The principal amount of a loan is fixed when you submit your application. However, sometimes unexpected expenses can occur. And the loan may no longer be enough. In such cases, you often consider your options. Many take out an additional loan to pay for the increased expenses. However, is this the only option?

You can also take out a top-up loan. This additional amount can supplement your expenses. Your eligibility is checked before receiving a top-up loan. Not all plans are eligible for top-up loans. This article discusses home loan eligibility and advantages and how to get a top-up loan.

What is a top-up loan?

If you already have a home loan, you can apply for a top-up loan from the same bank or lender over the existing loan amount. This top-up loan gives you additional funds in the same plan.

A top-up loan can be used to cover additional expenses for your home. Banks and financial institutions provide this service to existing clients. For example, you can request a top-up loan if you already have a home loan with a lender. You will only be eligible if you fulfil the home loan eligibility criteria.

The tenure or interest rate of the original home loan will change once you purchase a top-up. These loans offer an excellent chance to overcome any financial barriers. However, to avail of these loans, you should check your eligibility.

Home loan eligibility criteria

Home loan eligibility conditions must be met when applying for a top-up loan. Home loan eligibility criteria used by most lenders are as follows:

  • A top-up loan is only available to those who have a personal loan with the provider.
  • The loan can be taken only after a defined period has passed and you have returned a part of the loan. Both these criteria are specific to the lender.
  • You are eligible only if you have a good repayment history with no late instalments or missing EMI payments.
  • You should also be able to repay your loans. This means you need to show your income is enough to pay back the additional EMI.
  • You need a high CIBIL score (a CIBIL score of 650-750). The score shows your reliability.

What documentation do you need to prove your eligibility?

Because you already have a personal loan (connection) with the institution, you need little or no paperwork to get a top-up loan. Some lenders now offer pre-approved rapid top-up personal loans to current loan clients. However, you may need to give some documents to prove your home loan eligibility. Some will ask for documents to prove the following;

  • Address and identity proof
  • Income proof
  • Property documents
  • Proof of employment

How can I get a top-up loan?

The application process for a top-up loan varies between lenders. You can apply for a top-up loan if you have completed six months of loan repayment. However, some require you to pay 12 instalments before requesting a top-up.

A key point to remember is you need to make payments on time.

You have to complete and submit an application form for a top-up loan. You should submit salary receipts and the most recent financial records with the application. Once approved, the amount is credited into the account within 2-3 days.

Benefits of a top-up loan

There are no financial limits.

A top-up loan amount can be used for any purpose relating to your current property. It can be used to purchase a parking place, repair the property, build furniture, or other personal expenses.

The procedure is simple and fast.

You will receive the amount within 2-3 days after verification is complete. Verification is a simple process because you are an existing customer.

The interest rates are low.

Top-up loans are a profitable option to obtain funds since they offer lower interest rates than personal loans. The interest rates vary from one lender to another. However, this is often between 11 and 13%. In contrast, a personal loan can have an interest rate of up to 22%.

There is no mortgage.

A current home loan client may apply for a top-up loan without providing extra assets to the lending company.

What do you need to know before applying for a top-up loan?

  • Top-up loans can be used for many reasons. They can be taken out on personal loans, home loans, education loans, and others.
  • The home loan eligibility criteria for a top-up home loan are easy to meet. The application process is simpler if you are consistent in paying previous EMI.
  • If you adhere to the home loan eligibility criteria, some lenders may offer you as much as INR 1 crore with a ten-year tenure.
  • You can apply for top-up loans online. The process is simple and fast. The verification is also done online so you need not go anywhere.
  • Loan terms differ from one lender to another. Read all documents thoroughly.
  • Some lenders offer no-documentation top-up loans. You will have to check individually with the lender.


As discussed, a top-up loan is an extra loan added to the current personal loan or a house loan. If you are paying your loan and have carefully paid your instalments, you may get a top-up loan. Most Indian lenders provide top-up loans at the same interest rate as your current loan, with simple paperwork and a fast approval procedure.

It may be simpler to consolidate your debt by taking a top-up loan if you have multiple home loans. If you don’t know where to start, reach out to an expert. Piramal Finance provides competitive interest rates, longer loan terms, and round-the-clock customer service. Reach out to the experts now to understand your top-up home loan eligibility.