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As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.
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Zero Processing Fees if loan repayment is
done from IDFC FIRST Bank account.
Avail Home Loan at Attractive Interest Rates
Zero Processing Fees if loan repayment is done from IDFC FIRST Bank account.
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Tailor-made loans with minimal documentation
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Digitalized process for customer convenience and faster TAT
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Tenure up to 30 years
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Advantage of PMAY subsidy for 1st time home buyers
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Tailor-made loans with minimal documentation
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Digitalized process for customer convenience and faster TAT
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Tenure up to 30 years
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Advantage of PMAY subsidy for 1st time home buyers
Home Loan Top-up
A top-up on a home loan can be used for building, furnishing, or renovating your home. It is especially useful for existing home loan borrowers, who can apply for it without offering collateral. The interest on home loan top-ups is generally higher than home loan interest, starting from 8.75%. Considering everything, it is an affordable tool to spruce up your house.
The terms of the loan vary from one lender to another, with the maximum loan amount determined by the outstanding balance on the home loan or by a predetermined amount set by the bank.
Home loan Top-up features
The standout features of a top-up on a home loan include:
A top-up loan can be used for many reasons, such as home renovation, furnishing, and redesign.
A top-up loan can last for up to 20 years, or until you have repaid your primary home loan. Lenders consider the applicant's profile, income, age, and property value when deciding the loan tenure.
You can get a top-up loan of the amount you want. However, the combined amount of the original home loan and the top-up loan should not exceed 70% of the property's worth.
The interest rates on top-up loans are nearly the same as home loan interest rates.
The interest rate on Top-up loans
Home loan top-ups are an attractive proposition as they are not very heavy on interest. They do not feel like a burden, helping you conveniently manage your finances. The interest on top-up loans is comparable to the home loan interest rate, although the latter is more affordable.
IDFC FIRST Bank offers home loan top-ups from 8.75% onwards.
Employment Type |
Product |
Home Loan Rate |
Salaried |
Home Loan |
8.75% onwards |
Home Loan Balance Transfer |
8.75% onwards |
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Home Loan Top Up |
Top Up at same ROI as BT subject to max capping of 100% of the BT loan amount |
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Self-Employed |
Home Loan |
8.85% onwards |
Home Loan Balance Transfer |
8.85% onwards |
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Home Loan Top Up |
Top Up at same ROI as BT subject to max capping of 100% of the BT loan amount |
ELIGIBILITY
Who can apply?
The eligibility criteria for a top-up loan are different for every lender. Still, here are some common criteria for top-up loans:
- No more than one EMI bounce should have occurred in six months before the application
- If an EMI bounce occurred, it should be resolved before the next EMI is due
- You must pay the original home loan EMI in full for nine months
- Banks require one year of clear repayment history for top up loans, coupled with balance transfer home loans from other banks
The following are the general criteria, which are the same as home loans:
For Self-Employed Individuals:
- Resident Indians only
- Aged between 23-70 years
- Minimum 4 years of business continuity
- Must earn minimum ₹1.5 lakh per annum
- Tenure duration 12 months - 300 months
For Salaried Individuals:
- Resident Indians
- Aged between 21-60 years
- Minimum 3 years of experience
- Must earn minimum ₹1 lakh per annum
- Tenure duration 12 months – 360 months
Documentation:
You do need many documents to apply for a top-up loan because the lender is usually the same as your home loan. Still, keep the following documents handy:
- PAN Card
- Valid Photo identity proof
- Valid Address proof
- Self-attested copies of income proof
- For salaried individuals: Last three months’ salary slip/salary certificate, latest year’s ITR with income computation/Form 16, last six month’s bank statement reflecting salary credits, repayment track/bank statements proof of track with loan sanction letter/amortization schedule
- For self-employed individuals: Income tax return with income computation, Balance sheets and P&L accounts with schedules, GST return for the number of months not covered in the latest financial year, credit card statement for 6 months, copy of Contract Order and Form 16 A (applicable only if income is from contracts), bank statements for the last 6 months, account of the individual borrower and co-borrowers, and repayment track/bank statements proof of track with loan sanction letter/amortization schedule
FREQUENTLY ASKED QUESTIONS
What is a Top-up loan?
Home loan top-ups are loans given by lenders to individuals having existing home loans. However, certain lenders restrict borrowers from using top-up loans for only certain reasons. They only allow home loan top-ups for home renovation, rebuilding, and similar reasons.
Who can avail a Top-up loan?
Existing home loan borrowers can apply for home loan top-ups without additional collateral.
What is the maximum amount that can be availed as a Top-up loan?
The maximum amount of a top-up loan varies depending on the lender and the Loan-to-Value (LTV) ratio. Some lenders have no limit, whereas others impose a limit based on your home loan. Lenders typically limit a borrower's ability to apply for a top-up loan to the loan amount given under the initial loan.
What is the maximum term on a Top-up loan?
A top-up loan has no set repayment period. It depends on the borrower's background, creditworthiness, and other factors. A top-up loan is frequently approved for a longer term, although it cannot be longer than the initial loan's outstanding term.
Does a Top-up loan need collateral?
A top-up loan does not need any additional security or collateral. It is one of the many benefits of using it to fund your requirements.
Can I avail myself of a Top-up loan along with a balance transfer loan?
If you have a home loan with a lender and they do not allow you to take a top-up loan, you can apply with another lender. You can then transfer your home loan with the first lender using the balance transfer facility. Many lenders offer special deals and concessions on top-up loans to entice borrowers for a balance transfer.
What are the documents required for a Top-up loan?
PAN Card
Valid Photo identity proof
Valid Address proof
Self-attested copies of income proof
- • For salaried individuals: Last three months’ salary slip/salary certificate, latest year’s ITR with income computation/Form 16, last six month’s bank statement reflecting salary credits, repayment track/bank statements proof of track with loan sanction letter/amortization schedule.
- • For self-employed individuals: Income tax return with income computation, Balance sheets and P&L accounts with schedules, GST return for the number of months not covered in the latest financial year, credit card statement for 6 months, copy of Contract Order and Form 16 A (applicable only if income is from contracts), bank statements for the last 6 months, account of the individual borrower and co-borrowers, and repayment track/bank statements proof of track with loan sanction letter/amortization schedule.
