Can we get top up loan on home loan?

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Yes. You can borrow money on an existing Home Loan in the form of Top-up Loan.

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Subsequently, how can I increase my existing home loan amount?

Tips to Increase Home Loan Eligibility

  1. 6 Best Ways to Increase Home Loan Eligibility Quickly. Add a co-applicant. …
  2. Add a co-applicant. …
  3. Maintain a credit score above 750. …
  4. Repay your debts religiously. …
  5. Open an account with your preferred lender. …
  6. Declare your additional income sources. …
  7. Choose a longer tenure.
Also to know is, how does home loan top up work? A Top up loan meaning an extra loan is a financing option that is offered over and above the existing loan amount for products such as home loan and personal loan. The top-up loan is offered to customers who have an existing relationship with the lender, have a good credit score and have repayment ability.

Hereof, how is top up loan calculated?

Banks will calculate the top-up loan amount, after taking into account the Equated Monthly Instalment (EMI) of your running home loan. The bank will estimate the Fixed-Obligation-to-Income ratio (FOIR) for your top-up loan, after deducting the instalments of all your running obligations.

Is it good to take top up loan?

“Due to the relatively lower interest rate structure and flexible loan tenure, top-up loans are a better alternative to a personal loan. A top-up loan can be taken for a maximum tenure of upto 30 years or the remaining period of your existing home loan, while a personal loan is offered for a maximum of five years.

2 Related Question Answers Found

What is the maximum term for top up loan?

You can repay the top-up loan in monthly instalments (EMI) over a maximum term of 15 years. The actual loan term depends on factors such as your profile, age at maturity of loan, age of the property at loan maturity, etc. The term would also depend on the specific repayment scheme opted by you.

When can I top up my home loan?

If borrowers have paid money for 12 months without missing a single installment, they are eligible for a home loan top-up. The amount of money that a bank will sanction depends on the number of equated monthly instalments (EMIs) paid.

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