What differentiates a home loan top-up from a personal loan?

A home loan top-up is an additional loan that you can take on top of your existing home loan. You will qualify for it only if you are an existing Tata Capital home loan customer. The top-up loan can be used for any purpose or reason.On the other hand, a personal loan is an individual loan. You need to apply for it separately. You can use a personal loan for several needs, such as purchasing electronics, booking a vacation, renovating your home, repairing or buying a vehicle, etc.

Who qualifies for an increase in their home loan?

To qualify for an increase in your loan through the top up on your home loan, you need to meet these three criteria:You must be an existing Tata Capital Loan customer with an active home loanYou must not have any outstanding loan dues, or Equated Monthly Installment (EMI) defaults in your payment historyYou should have a high credit score of over 750

What is the maximum amount that can be added to a home loan?

At Tata Capital, we offer home loans starting from Rs 5 lakhs and ranging up to Rs 5 crores. You can pick any amount based on your financial needs, credit score, budget, etc.

How is home loan top-up interest calculated?

The top-up on home loan interest is usually calculated based on the prevailing interest rates on your home loan. However, it is on essential to note that the interest rates for a top-up loan may be higher or lower than the interest rates for the original home loan. It is best to discuss this in detail when applying for the top up home loan.

Can I obtain a top-up on home loan from a bank other than the one that already holds my home loan?

Yes. You can apply for a home loan top-up at the same bank as well as if you are transferring your loan to another bank through a home loan balance transfer.

What is the processing time for a house loan top-up?

The processing time for it is reasonably quick. These loans are generally pre-approved and granted quickly, so you do not have to wait long.

What is the home loan top-up repayment tenure?

The top-up on home loan can be repaid with your existing EMIs within your original home loan tenure. At Tata Capital, we offer a maximum home loan tenure of up to 30 years. You can select the tenure that best fits your budget.

What purposes are allowed for a home loan top-up?

It is a multi-purpose loan and can be used for any purpose. As long as you have an existing Tata Capital home loan, you can apply for it and use it as you see fit.

Can I submit an online application for a home loan top-up?

Yes, you can apply online by using the following steps:Visit the Home Loan Top-Up pageClick on Apply NowSelect Existing CustomerEnter your mobile numberClick on Send OTPSince the top-up loan is a pre-approved loan, you will be shown the details of the loan amount you are eligible for. You can then proceed to apply for it.

What kind of documentation is needed for a home loan top-up?

You need to submit the following documents:Know Your Client (KYC) documents, such as identity and address proofs, including Aadhaar card, Pan card, Voter's ID, Passport, etc.Bank statementsIncome proofAnd other similar documents

Will my credit score affect whether or not I qualify for a home loan top-up?

Yes, your credit score plays a critical role in all your loan applications. To qualify for a top-up on your home loan, you must have a credit score of 750 and above. The higher the credit score, the easier it gets to avail of a top-up on home loan of your preferred amount.

How much does processing a home loan top-up cost?

At Tata Capital, we charge a nominal processing fee of 0.5% of the loan amount + Goods and Services Tax (GST) for all home loans. You can reach out to our home loan customer care service to understand the applicable fees and charges involved in processing the top-up loan.

Can I deduct the interest I pay on a home loan top-up?

Yes, you can deduct the interest paid on the top-up loan and save money spent on tax under Section 24 of the Income Tax Act 1961. A top-up on a home loan is treated like a regular home loan for tax purposes. You can claim income tax deductions on the interest paid on the top-up loan as long as you use the funds for renovation or improvement of the concerned property. Section 24 offers tax deductions of up to Rs 2 lakh on a home loan.

What will happen if I do not make a top-up loan payment?

The repayments towards a top-up on a home loan must be made on time. If you fail to make the payments, you will incur a late penalty fee of up to 2.00% per month over and above the prevailing home loan interest rate. You may also receive legal notice if you are unable to pay the EMIs over a period of time. It is advised to pick a loan amount and tenure that comfortably fits your budget to avoid late payments and hassles later.

Home Loan Top Up - Interest Rates and Tax Benefits

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Home Loan
Top-Up

What is a Home Loan Top-Up?

A home loan top up is a facility offered by lenders under which a borrower can take an additional loan over and above their existing home loan. The home loan top up facility is available only for existing home loan borrowers without the need for any additional security or guarantee. A top up loan on a home loan is a multi-purpose loan that can be used for any purpose.

For example, if the property builder overshoots the initial budget and you need money to fulfill this price gap, you can opt for a housing loan top up. With Tata Capital, you can avail of a home loan top up and pay for your various requirements, such as buying furniture, extending or renovating your house, and planning the interiors of your house.

Why Should You Go for a Home Loan Top-Up?

A top-up loan on a home loan allows you to avail of financing at lower interest rates and meet your additional financial requirements. Here are the reasons why you opt for a housing loan top up:

Fund All Your Financial Requirements

By availing of a home loan top up amount, you can meet your various personal or professional requirements with ease. Top-up loans are multi-purpose loans, which means that there are no restrictions on their end uses.

Relatively Lower ROI Than Other Sources of Finance

At times, you may need financing to tackle an emergency or any other purpose. Availing of a top-up loan is the best solution during such times. Home loan top up interest rates are generally lower than other unsecured modes of financing, such as personal loans and credit cards.

Quick Sanction and Disbursal

Home loan top-ups are provided to existing customers of lenders and are generally pre-approved. That is why lenders take no time to sanction and disburse top up loan on home loan. This ensures that you don’t have to wait for long to get access to finances in the hour of need.

Use it as You Need it

Another benefit of availing of a housing loan top up is that you can use it as per your requirements. You can apply for a home loan top up amount as per your precise needs and you will have to pay the EMIs only for the amount you’ve borrowed.

Easy to Repay

You can use a home loan top up amount to fund your various requirements, and then you can repay the amount in easy EMIs. The repayment of a top-up loan doesn’t put any additional burden on your monthly budget.

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Apply via WhatsApp

Who Can Get a Top-Up Loan?

The eligibility for top up home loan varies from one lending institution to another. Therefore, you must confirm your home loan top-up eligibility with your lender before approaching it for a top-up on your home loan.To get a top-up home loan with Tata Capital, you must fulfill the following eligibility criteria:

You must be an existing customer with us. This means that you must have already taken a loan for house from Tata Capital

Your home loan payment history should not reflect any outstanding dues or defaults on EMIs

You should have a good credit score, preferably over 750

Note that our home loan top up eligibility may differ from case to case based on the customer’s profile. Hence,

Hence, you may need to fulfill some additional eligibility criteria and home loan documents requirements to avail of a home loan top-up with us..

How to calculate a top-up loan?

A home loan top-up is calculated on the basis of your existing home loan amount, tenure, credit score, and other similar factors. Most lenders assess your Fixed Obligation to Income Ratio (FOIR), a metric commonly used by loan providers to determine your ability to repay a loan.

In addition to this, you also have to pay an interest rate on top-up loans, which can differ based on your credit score and the loan amount and tenor.

A home loan interest calculator on our app can help you understand how to calculate a top-up loan in greater detail.

How to Apply for a Home Loan Top-Up?

Applying for a home loan top up with Tata Capital is easy and convenient. All that you have to do is follow the steps mentioned below:

Apply for top-up

Choose how you want to apply for a home loan top-up - online, via phone call, or via WhatsApp.

Personal details

Tell us about your personal, employment, and financial details.

Check Eligibility

Check your home loan top up eligibility and home loan top up interest rate.

Top-up loan amount

Mention the home loan top up amount that you want to borrow.

Home loan details

Furnish the details of your existing home loan.

Submit documents

Submit the necessary documents and fees involved

Once you complete these steps, your home loan top-up amount will be transferred directly into your bank account.

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What our customers say about us

Start to end of my loan process was simple and guidance of your team members were to the point. My last communication was with Mr. MANOJ PATEL from surat branch he was very polite and helpful.

Anamika Vijaykumar Tiwari

Home Loan | 20 Jun, 2024

We extend our heartfelt gratitude to Mr. Pravin Sagare, Senior Officer of Customer Service, for his exceptional service. His remarkable demeanor and professionalism during telephonic interactions with customers have been truly outstanding. Over the past two years, we have utilized various services, yet none have matched the quality provided by Mr. Sagare. We are deeply impressed by the exemplary service, due to this reaons we has influenced our decision to obtain a second home loan from TATA Capital Housing Finance Limited.

Avinash Vasantbhai Bhesaniya

Home Loan | 07 Jun, 2024

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 Mar, 2022

Service provided by Manoj Patel in Surat vesu Branch was helpful and because of his support we were able to close loan.

Prakash Patil

Home Loan | 23 Aug, 2024

Excellent A1 Services. The Lady at the Customer Desk is very Cooperative and helpful so that my work completed without the time frame. The name of the Lady is Amruta Pathak. God bless her and her family. Thanks and Regards for the entire team of Tata Capital.

Nandlal Lal Arora

Home Loan | 13 Aug, 2024

Very good & prompt service, and we have spoken to Mr. Manish also, and he always helps us to provide our request. Thank you, Ms Apurva Shende & Manish Padwal

Farhang Ahmed Azar

Home Loan | 24 Jul, 2024

I'm happy with the service and the help I got earlier for foreclosure letter. Thank you so much & thanks to Alisha mam for her guidance.

Akshay Anil Pawar

Home Loan | 17 Jul, 2024

Special thanks to Mr. Avinash for his help rendered with full commitment to his job, answering the queries to me clearly, and follow up so that the work is done in given time to get customer satisfaction.

Hannah Grace

Home Loan | 02 Jul, 2024

Mr Avinash who handled my case is well experienced and has courtesy for customers' concerns. However, some of the Tata Capital products are very expensive when compared to other banks' ones!

Mohammed Shakeel Urrahman

Home Loan | 28 Jun, 2024

Start to end of my loan process was simple and guidance of your team members were to the point. My last communication was with Mr. MANOJ PATEL from surat branch he was very polite and helpful.

Anamika Vijaykumar Tiwari

Home Loan | 20 Jun, 2024

Avinash Vasantbhai Bhesaniya

Home Loan | 07 Jun, 2024

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 Mar, 2022

Service provided by Manoj Patel in Surat vesu Branch was helpful and because of his support we were able to close loan.

Prakash Patil

Home Loan | 23 Aug, 2024

Nandlal Lal Arora

Home Loan | 13 Aug, 2024

Very good & prompt service, and we have spoken to Mr. Manish also, and he always helps us to provide our request. Thank you, Ms Apurva Shende & Manish Padwal

Farhang Ahmed Azar

Home Loan | 24 Jul, 2024

I'm happy with the service and the help I got earlier for foreclosure letter. Thank you so much & thanks to Alisha mam for her guidance.

Akshay Anil Pawar

Home Loan | 17 Jul, 2024

Hannah Grace

Home Loan | 02 Jul, 2024

Mr Avinash who handled my case is well experienced and has courtesy for customers' concerns. However, some of the Tata Capital products are very expensive when compared to other banks' ones!

Mohammed Shakeel Urrahman

Home Loan | 28 Jun, 2024

Start to end of my loan process was simple and guidance of your team members were to the point. My last communication was with Mr. MANOJ PATEL from surat branch he was very polite and helpful.

Anamika Vijaykumar Tiwari

Home Loan | 20 Jun, 2024

Avinash Vasantbhai Bhesaniya

Home Loan | 07 Jun, 2024

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 Mar, 2022

Read All

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