Things you will know after reading this article:

  • What is a loan top up?
  • Why do people go for top ups in their loans?
  • What is the eligibility criteria?
  • What are the documents required?

A loan is an amount of money borrowed by a bank or any other money lending organization by borrowers to fulfill their personal needs or responsibilities. There are chances where the loan amount an individual opted for may fall short, or the money need may be higher than one expected. For such scenarios banks offer what are called as Loan Top-Up. Top-Up loans are given on home loans by banks to their loyal customers. It is nothing but a process through which persons who already have a home loan can apply for an additional loan to the existing one after the repayment is complete.

Banks permit their current clients to avail a top-up credit for different individual and money related requirements. A couple of reasons to benefit a top-up advance are recorded here:

Solidify Debt: If a client has different credits including obligation, for example, a personal loan, a car loan, and so forth., he can apply for a top-up advance to merge all the loans together and bring down the overall cost. This can likewise enable the client to improve his credit score assessment since having numerous loans seriously impacts the credit score rating of a client.

Expansion to the Primary Loan: If a client has just applied for a home credit, he can apply for a top-up loan to include decor, renovation, and so forth to the new property with the assets from a top-up loan. He can likewise apply for a top-up in the event that he has other budgetary needs, for example, Visa obligation, family excursion, clinical costs, and so on. The banks generally don’t screen the use of the assets dispensed for a top-up advance. Clients can utilize the assets for different budgetary necessities.

Meet Other Financial Needs: If a client has sanctioned a personal loan for a family excursion, he can apply for a top-up loan to meet clinical costs, wedding, kid’s education, or different reasons. It isn’t necessary to avail a top-up loan from a similar bank that the client has benefited an essential loan, for example, a home loan, individual loan, and so forth. They can utilize the Balance Transfer office to move the advance to another bank and afterward apply for a top-up loan.

Let us discuss the most significant features of a Top-Up loan-

  • The option for a top-up is valid for 20 years from the original loan sanctioned or until the original balance is to be paid. The tenure varies from bank to bank. For a top-up the bank takes into consideration the applicant’s age, income, financial stability.
  • A Top-up loan can be taken to address four requirements, namely- Furnishing, Home décor, Home renovation and emergency fund requirements.
  • The interest rates are usually identical to that of a home loan. Sometimes the banks may charge an interest rate higher on a top-up loan when compared to a normal home loan.
  • The loan amount should not exceed 70-80% of the total value of the property. This obligation applies to both home loan and the top-up requested for.


Given below are the criteria’s one has to fulfill in order to apply for a top-up loan-

  • The person already has a loan with the bank.
  • The credit report must be in the favor of the borrower.
  • The borrower should not be a defaulter. A good credit history is always preferred when the bank considers a top-up in the loan.
  • The bank retains legal rights and claim to the property, and the property is still attached as a lien to the loan.


IDENTITY PROOFThe bank needs to know that the individual opening an account is India’s citizen, and the document has a photograph of the person opening the account.PassportPAN cardDriving licenceRation CardBirth certificateSC/ST/OBC certificates
ADDRESS PROOFThe address of India further proves the citizenship and identity of the individual.Voter ID cardUtility billsPermanent driving licence Ration cardAadhar card
  • Salary slip of three months of the applicant
  • Three recent passport sized photographs.


If you are a loyal customer of a bank, and have a healthy credit score and history then the banks will be more than just willing to sanction your existing loan with a top-up. It is a convenient method of taking care of expenses with much less hassle.

About the Author

BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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