If one opts for a top up loan, what is the maximum loan tenure one can hope for?
A top up home loan is available only after you have started repayment of your home loan for a minimum period depending on your bank. Usually banks have a minimum repayment period of 6 to 12 months before they consider you for a top up home loan. The tenure period of the top up loan runs concurrently with your original home loan. So if you have 10 years pending tenure for your original home loan, your top up loan tenure cannot exceed 10 years.
Top-up loan is almost like a Personal Loan, except that it comes with a better interest rate. Though not as good as Home Loan rates. You can utilise this loan for any purpose. A top loan on your existing Home Loan is an ideal choice to pay for renovating your house, funding your own parking space, or paying for your child’s higher education, etc. The tenure of the loan will depend on the lender.
Of course, you can avail a top-up loan from the bank or financial institution that you have an existing loan with. However, you can always balance transfer your existing loan to another bank that provides better features and then apply for a top-up loan. Here are a few popular choices for top-up loans:
HDFC Top-up Loan – Salaried individuals can avail up to Rs. 50 lakhs top-up loan, whether they are existing customers or new customers who have opted for a balance transfer. Benefits include attractive interest rates, simple repayment structure, and hassle-free documentation. The maximum tenure offered is 15 years.
ICICI Top-up Loan – No collateral required, simple and hassle-free documentation, instant approval and quick disbursal, and low-interest rates (starting from 10.99% for Personal Loan top-up). On a Home Loan top-up, you get a maximum tenure of 20 years and a loan amount equal to 100% of your sanctioned Home Loan.
SBI Top-up Loan – Salient features of a top-up loan on your Home Loan from SBI include low-interest rates with daily reducing balance, long repayment tenure of 30 years, no hidden charges, low processing charges, and no prepayment penalty.
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