Home Loan

Need Instant Funds? Opt for a Top-Up Loan


In today’s times, almost everyone dreams of owning a house. People apply for home loans after putting a lot of effort into choosing the ideal home and preparing their finances. After the first payment, which is the down payment, the property buyer starts making repayments toward the principal loan amount every month (i.e., EMIs).

While a mortgage loan is a great place to start, you may need extra cash for unforeseen events. Because of this, several banks and lenders provide their existing customers with the chance to take out a home top-up loan. This home loan supplement can remove or greatly reduce the urgent need for instant funds.

What is a top-up loan on a home loan?

To “top up” a mortgage means to take out one more loan on top of the one you already have. Remodelling your home, expanding your business, paying for emergency medical bills, taking a vacation, or furthering your education are all good uses of such extra cash. Your best bet for such expenses is a top-up loan. You can take out such a loan from many banks that offer attractive home loan features. Your EMI payments may need to go up a little to cover this extra cost, but if you plan your finances well, it is manageable.

Benefits of an Instant Home Loan Top-Up

1. Extended Repayment Tenure

A home loan extension has a far more drawn-out repayment schedule than a typical personal or business loan. A top-up on your home loan may be for a shorter or the same period as your existing mortgage. By spreading out your payments over a longer period, you can budget your money well and ease the pressure from your monthly payments. For instance, a 15-year top-up loan can be added to an existing home loan tenure.

2. Lower interest rates

Home loans fall under the broader category of secured loans, so they often have lower interest rates. If you choose a home top-up loan, the interest rate on the additional loan amount is the same as on your existing home loan amount.

3. Rapid Processing

One of the key benefits of a top-up loan is the quick processing time. Many lenders accept applications for pre-approved supplemental loans. This process requires little documentation. Most of the time, the quick home top-up loan is sanctioned within a few days.

4. Increased Loan Amount

If you have been consistent with your EMI payments and have repaid a good sum, you may qualify for a larger top-up loan amount. The bank will re-examine your credit history before finalising the supplementary loan and its amount.

5. Tax Benefit

Suppose the top-up amount is used for buying, constructing, renovating, or maintaining a house. In that case, the interest paid on the loan may be deducted from your taxable income within the limits of Internal Revenue Code Sections 24B and 80C. If you want to know how to make the most of these provisions, talk to a financial advisor.

Advantages of a Top-Up Loan Over a New Loan

These are the reasons why a top-up loan is better than taking out a new loan:

  • You can save time by not having to apply for loans under several names. 
  • Taking out many loans at once might hurt your credit history and score (CIBIL).  
  • There are no hidden costs. Also, there is a bare minimum fee required for mortgage top-ups. On the other hand, taking out a new loan may cost you more than the old one, owing to charges like processing fees. 
  • A home loan has one of the lowest interest rates in the market. Besides this, the overall cost of a top-up loan is also far lower than that of personal loans or credit cards. 
  • Since the lender has already verified your documents during the original application, the paperwork for the top-up loan would be minimal. 
  • Because a top-up loan increases your overall loan amount, you can always negotiate with your lender to extend the loan tenure. This way, you can keep your EMIs within your means. 
  • A loan extension approval will be much quicker than a new loan approval. You are seen as an established customer rather than a brand-new one. So, the lender approves the top-up without much hassle.

Eligibility for a Home Top-Up Loan

Home loan top-ups are only given to the existing clients of a bank. Also, your lender will only provide you with a top-up if you have been regular with your EMI payments for at least a year.

Your mortgage qualification may be calculated using a home loan eligibility calculator. The lender will provide you with instant funds if you meet all the requirements.

Tips for Getting an Urgent Addition to Your Mortgage

Piramal Finance offers instant loan top-ups to all existing customers who qualify for them. Taking out a home loan with Piramal Finance gives you access to low interest rates and exciting deals. With the company’s quick top-up loan processing, you can have all your urgent money needs met.


With a top-up home loan, you can quickly and easily borrow extra funds against your existing mortgage. This loan is versatile, and the amount can be used for various purposes. Due to an extended loan tenure and feasible EMIs, a top-up adds no burden to your finances.

If you are met with sudden financial needs, Piramal Finance makes it easy and convenient for you to get a home loan extension. For more information or financial assistance, check out their other blogs and products.