Home Loan

In India, people can now easily get funds for home renovation, home extension, and other expenses through an ongoing home loan. A lot of home loans offer a top-up loan facility that can be used for the above-mentioned reasons.

Many lenders offer this to borrowers for customer retention and continued loyalty. While some may charge interest rates as per home loan rates, others use a different rate, thus necessitating customers to go through the loan arrangements in detail. 

This article presents a list of lenders that offer top-up home loans in India and additional things to note about home top-up loans.

What is a home loan top-up facility?

A home loan top-up is offered by banks to their existing home loan customers. Some banks may include conditions such as the top-up loan must be used only for home-related expenses. While others are lenient when it comes to the end usage of funds. You can use these funds for any expense. 

List of Best Home Top-Up Loans in India

BanksInterest Rate
HDFC Home Loan Top Up Loan8.30% to 9.15% p.a.
SBI Home Top Up Loan7.90% to 10.10% p.a.
ICICI Home Loan Top Up6.90% to 8.05% p.a.
Axis Top-up Home Loan7.75% to 8.40% p.a.
Union Bank Home Loan Top Up6.80% to 7.35% p.a.
Bank of Baroda Home Loan Top Up7.45% to 8.80% p.a.
Citibank Top Up Exist Home Loan6.75% p.a.
MahaBank Top up for Home Loan7.55% to 8.55% p.a.

What are the advantages offered by a home top-up loan?

Some of the benefits offered by home top-up loans are:

  • Lower interest rates compared to unsecured loans such as personal loans or fresh home loans.
  • The loan amount can be used for many requirements such as construction expenses, home renovation, etc.
  • Some of the banks even allow the loan amount to be used for personal or business needs.
  • Tax benefits can be claimed if the user restricts it to home construction or renovation purposes.
  • Top-up loans generally have a faster loan approval process and disbursal process.

Are there any tax benefits on a home top-up loan?

Here are some of the tax benefits available to users of home top-up loans:

  • Borrowers can claim tax benefits on home top-up loans if the loan is intended to be used for purposes such as construction, renovation, or repair work of a residential building. 
  • They can also claim a maximum tax deduction of Rs. 30,000 if the home top-up loan is used for a self-occupied home. 
  • There is no limit on the deduction, if the loan is used for a let-out property, 
  • Both deductions come under the total tax deduction limit of Rs. 2 lakhs per year that is applicable on the interest portion of home loans.
  • If the home top-up loan is used for the purchase or construction of a new property, the principal and interest portion of the top-up loan is eligible for a tax deduction. This is subject to the limit stated under Section 80C and 24 (b). If the home top-up loan is used for home renovation, repair, or alteration of residential property, then the deduction can be claimed only for the interest portion of the loan.

To claim the tax benefits, borrowers must ensure to preserve the receipts and related documents of all the housework done using the top-up loan.

What are the eligibility criteria for a home top-up loan?

The eligibility criteria for the home top-up loan are similar to those of home loans as set by the bank. Banks could have a different set of criteria. However, some of the commonly used points are:

  • Applicants should not have more than one EMI cheque bounce in the immediately preceding year.
  • If an applicant had an EMI cheque payment bounce, it should be cleared before the next EMI falls due.
  • A borrower should have had a minimum of six months of smooth repayment of the existing home loan.

Some of the general criteria that are the same as applicable to home loans are as follows:

  • Age:  21 to 65 years
  • Nationality: Resident Indian or Non-Resident Indian
  • Profession: Salaried or self-employed individuals

How to apply for a home loan top-up facility?

Borrowers can apply for a top-up home loan in many ways, depending on the bank’s application process. Some of the common ways that borrowers can use to apply for a top-up loan are:

  • Visit the bank branch that you have availed your home loan from and follow the process as explained by a bank representative
  • Visit the official website of the bank and apply online. Provide your contact details for the bank to get in touch to complete the process.


Home top-up loans can be an ideal choice for individuals who have already availed of a home loan but want additional financial assistance in rebuilding, renovating, or repairing a property. These come at reasonable interest rates and are therefore a go-to option for most borrowers.


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