There are times when you need extra funds but do not want to apply for a new loan altogether. Perhaps it’s for home repairs, your child’s education, a family wedding, or to expand your business.
If you already have a Home Loan running, a top up loan on Home Loan could be one of the most cost-effective and convenient ways to raise additional funds.
What Is a Top Up Loan on Home Loan?
A top up loan on Home Loan is an additional loan amount that you can borrow over and above your existing Home Loan from the same lender.
You can use the funds for a range of purposes, including home renovation, wedding, debt consolidation, travel, business needs, or any other personal or professional goal.
It does not require a separate mortgage and comes with an easier documentation process than a new loan application. It also tends to have a lower interest rate compared to unsecured loans, such as personal loans.
Features and Benefits of L&T Finance Home Loan Top Up
L&T Finance offers top up loans with a host of features that make it a reliable option when you need extra funding:
- Digital Journey: Paperless application and processing.
- Loan Amount Range: From ₹ 3 Lakh* to ₹ 7 Crore* depending on your eligibility.
- Easy Repayment: You can select a repayment tenure that suits your financial situation.
- Attractive Interest Rates: Starting from 9.55%* per annum.
- Longer Loan Tenure: Tenure of up to 20 years.
- Quick Disbursal: Fast processing and direct transfer to your bank account.
Home Loan Top Up Eligibility Criteria
Understanding your Home Loan top up eligibility in advance helps you prepare the required documents and apply with confidence. Here is what you need to know:
- Residency: Only Indian residents are eligible.
- Age Criteria:
- Salaried individuals: 23 Years to 70 Years
- Self-employed: 25 Years to 70 Years
- Profession: Salaried employees, self-employed professionals, and non-professionals.
- Other Considerations: Your eligibility can be enhanced by adding a co-applicant’s income or any other verifiable income sources.
Required Documents for Top Up Loan Application
The documentation for a top up loan on Home Loan is minimal. If you are applying with L&T Finance, the documents required are as follows:
-
Age Proof
Aadhaar Card | PAN Card | Passport
-
Address Proof
Utility bills (not older than 2 months | Aadhaar Card | Driving License | Passport | Voter ID, etc.
-
Photo ID Proof
PAN and any one of the following- Aadhaar Card | Driving License | Passport | Voter ID | Job card by NREGA | Letter issued by the National Population Register containing details of name and address
-
Income Proof
Income proofs vary for different professionals across salaried, non-salaried and self-employed.
- a) Salaried
- Salary slips for the last 3 months
- Bank statements for 1 year
iii. Latest Form 16
- b) Self Employed: Professionals
- Latest two ITRs (personal and business) with computation of income
- Advance tax challans (if available)
iii. Latest two years of P&L accounts and balance sheets (with schedules), certified by a CA
(both personal and business)
- Bank account statements (current and savings accounts) for the last 1 year
- Qualification Proof of professionals
- c) Self Employed: Non-Professionals
- Latest 2 years ITRs with computation for individual applicants and co-applicants (if
borrower is an individual)
- Bank account statements (current and savings accounts) for the last 1 year
iii. Latest 2 years of audited/CA-certified profit & loss accounts and balance sheets of the
firm/company (if borrower is a firm/company)
- Proof of Business (GST / Shop Establishment/Udayam Aadhar, etc.)
- MOA & AOA & Certificate of Incorporation
- For Partnership Firm-Partnership Deed
Other documents to be provided as required for disbursement of Loan
Interest Rates for Home Loan Top Up
The interest rate for L&T Finance top up loan on Home Loan starts from 9.55%* per annum, which is typically lower than the interest rate on unsecured credit options like Personal Loans or Credit Cards.
However, the exact interest rate offered will depend on multiple factors such as your credit profile, existing Home Loan history, loan amount, and tenure.
Tenure and Repayment Options
One of the main advantages of opting for a top up loan on Home Loan is the flexibility to repay over a long period. You can customise your EMI schedule based on your cash flow and repayment ability.
Fees and Charges
It is important to be aware of the applicable fees and charges before you apply. Here’s a snapshot of the main charges for L&T Finance:
| List of all fees and charges for Home Loan Top Up | |
| Processing Fees | Up to 3% of sanctioned amount + applicable taxes |
| Login Fees | Up to Rs.5000/- (inclusive of applicable taxes) (nonrefundable) |
| EMI Dishonour/Bounce Charge* | As shown in the table below |
| *A bounce charge is a charge for | |
| (i) dishonour of any repayment instrument; or | |
| (ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate | |
| Loan sanction amount (in INR) | Charges in (in INR) |
| < 5 lacs | ₹ 500 |
| 5 – 50 Lacs | ₹ 1000 |
| >50 Lacs – 2 Cr | ₹ 1500 |
| >2 Cr | ₹ 2000 |
| Penal Charges / Late Payment Charges(LPC) | 2% per month on overdue EMI* |
| *LPC revised from 3% to 2% per month on overdue EMI w.e.f. 4th Dec 2023 | |
| *Taxes applicable on LPC w.e.f. 1st Apr 2024 | |
| Annual Maintenance Charges (applicable only for Dropline Overdraft and Hybrid Overdraft): | Up to 0.25% + GST of Dropline Limit available at start of each year (i.e. first on 13th Month and then every anniversary thereon) |
| Statement or document retrieval charges | Duplicate NOC (charge is applicable for paper copy post 3 free copies per customer), list of documents, Photo copies of the documents (property & others) Rs.1000/- + applicable taxes |
| Repayment instrument swap fee (per swap) | ₹ 500/- + applicable taxes (applicable only for branch walk-ins) |
| Asset valuation and verification fee | 1% of loan amount + applicable taxes |
| Documentation and repayment setup fee | Rs.2,000/- + applicable taxes |
| Interest conversion fee | Floating interest rate to floating interest rate: 0.5% of balance Loan Amt. or Rs. 10,000/- whichever is higher + applicable taxes Floating interest rate to a fixed interest rate and vice versa: 1% of balance Loan Amt. or Rs. 10,000/- whichever is higher + applicable taxes |
| Charges incurred by LTF for initiating action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002: | Issue of Loan Recall Notice = ₹ 500/ – |
| Issue of Demand Notice = ₹ 1,000/ – | |
| Issue of Possession Notice = ₹ 2,000/ – | |
| Applying District Magistrate Order = ₹ 8,000/ – | |
| Taking Physical possession = ₹ 20,000/ – | |
| Actual cost incurred will be debited for expenses pertaining to Publication of Possession Notice/ Publication Demand Notice/Publication of Sale cum Auction Notice | |
| Loan Cancellation Charges: | ₹ 5000/ – + applicable taxes |
| Recovery of proportionate actual expenses from disbursement date(s), from individual borrower(s) in | LAP – Up to 1% of total disbursed loan amount + applicable taxes in case of closure within 24 months |
| Foreclosure / Full Prepayment Charges– Loan Against Property : | For Individual / Non-Individual Borrowers – |
| Floating Rate – Nil Charges where end use is not for business/commercial purpose For cases where end use is for business/commercial purpose | |
| i. Less than 1 year from disbursement – up to 3% principal outstanding + applicable taxes | |
| ii. Post 1 year of disbursement – up to 2% on principal outstanding + applicable taxes | |
| Fixed Rate – | |
| i. Less than 1 year from disbursement – up to 4% principal outstanding + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on principal outstanding + applicable taxes | |
| For Non – Individual Borrowers – (Applicant/Co – applicant) | |
| Fixed/Floating rate loan – | |
| i. Less than 1 year from disbursement – up to 4% principal outstanding + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on principal outstanding + applicable taxes | |
| Pre-payment Charges – Loan Against Property: | For Individual Borrowers – |
| Floating Rate – | |
| Nil Charges where end use is not for business/commercial purpose. For cases where end use is for business/commercial purpose | |
| i. Less than 1 year from disbursement – up to 3% on Partial/Pre-payment amount + applicable taxes | |
| ii. Post 1 year of disbursement – up to 2% on Partial/Prepayment amount + applicable taxes | |
| Fixed Rate – | |
| i. Less than 1 year from disbursement – up to 4% on Partial/Pre-payment amount + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Partial/Pre-payment amount + applicable taxes | |
| For Non – Individual Borrowers – (Applicant/Co – applicant) | |
| Fixed/Floating rate loan – | |
| i. Less than 1 year from disbursement – up to 4% on Partial/Prepayment + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Partial/Prepayment amount + applicable taxes | |
| For Individual Borrowers – | |
| Floating Rate – | |
| Nil Charges where end use is not for business/commercial purpose For cases where end use is for business/commercial purpose | |
| i. Less than 1 year from disbursement – up to 3% on Dropline Limit + applicable taxes | |
| ii. Post 1 year of disbursement – up to 2% on Dropline Limit + applicable taxes | |
| Fixed Rate – | |
| i. Less than 1 year from disbursement – up to 4% Dropline Limit + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Dropline Limit + applicable taxes | |
| For Non – Individual Borrowers – (Applicant/Co – applicant) | |
| Fixed/Floating rate loan – | |
| i. Less than 1 year from disbursement – up to 4% on Dropline Limit + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Dropline Limit + applicable taxes | |
| Foreclosure / Full Prepayment Charges – for Dropline Overdraft / Hybrid Overdraft | For Individual Borrowers – |
| Floating Rate – | |
| Nil Charges where end use is not for business/commercial purpose. For cases where end use is for business/commercial purpose | |
| i. Less than 1 year from disbursement – up to 3% on Partial/Pre-payment amount + applicable taxes | |
| ii. Post 1 year of disbursement – up to 2% on Partial/Prepayment amount + applicable taxes | |
| Fixed Rate – | |
| i. Less than 1 year from disbursement – up to 4% on Partial/Pre-payment amount + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Partial/Pre-payment amount + applicable taxes | |
| For Non – Individual Borrowers – (Applicant/Co – applicant) | |
| Fixed/Floating rate loan – | |
| i. Less than 1 year from disbursement – up to 4% on Partial/Prepayment + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Partial/Prepayment amount + applicable taxes | |
| For Individual Borrowers – | |
| Floating Rate – | |
| Nil Charges where end use is not for business/commercial purpose For cases where end use is for business/commercial purpose | |
| i. Less than 1 year from disbursement – up to 3% on Dropline Limit + applicable taxes | |
| ii. Post 1 year of disbursement – up to 2% on Dropline Limit + applicable taxes | |
| Fixed Rate – | |
| i. Less than 1 year from disbursement – up to 4% Dropline Limit + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Dropline Limit + applicable taxes | |
| For Non – Individual Borrowers – (Applicant/Co – applicant) | |
| Fixed/Floating rate loan – | |
| i. Less than 1 year from disbursement – up to 4% on Dropline Limit + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Dropline Limit + applicable taxes | |
| Pre-payment Charges – – for Dropline Overdraft / Hybrid Overdraft: | Not allowed till the day after the First Due Date. No Charges applicable from the day after the First Due Date Part pre-payment of Loan toward limit reduction is not available |
| Non-Compliance Charges: | Up to 1% p.a. of principal outstanding loan amount + applicable taxes |
| Breakup between Principal & Interest: | As per Repayment Schedule |
| Example of SMA/ NPA classification: | More particularly mentioned under “Classification of Assets” under the head “Miscellaneous” |
| Field collection service fee | Rs. 500/- per collection + applicable taxes |
| Legal fees and charges | Up to Rs.50,000/- + applicable taxes |
| Recovery Charges | Up to Rs.1,00,000/- + applicable taxes |
| Auction fees | Up to 1% of auction sale amount + applicable taxes |
How to Apply for a Top Up Loan on Home Loan
Applying for a top up loan on Home Loan is simple and quick in case of most lenders. Here are the steps to apply with L&T Finance:
- Apply Online in Minutes:
Click on “Apply Now” and fill in the form with your personal details and other relevant information. - Connect with our representative:
Our representative will contact you with the details of the loan offer and collect your documents.
- Eligibility and Document check:
Your eligibility will be checked and documents will be verified before processing the loan.
- Configure your mode of repayments:
You can select your repayment mode and set up a convenient EMI payment schedule. - Get Loan Disbursement:
Receive the loan amount directly into your account, ensuring convenient and smooth access to funds.
What Can You Use the Top Up Loan For?
The top up loan on Home Loan is a multi-purpose loan and can be used for:
- Home Renovation or Improvement
- Marriage Expenses
- Business Expansion
- Debt Consolidation
There is no restriction on usage as long as it is for legal purposes.
EMI Calculator for Home Loan Top Up
To plan your budget better, you can use the EMI calculator on the L&T Finance website. You can enter:
- Preferred Loan Amount: Between ₹ 3,00,000 and ₹ 7,00,00,000
- Interest Rate: Starting at 9.55%*
- Loan Tenure: up to 20 years
The tool will display the estimated EMI and interest payable, helping you make an informed choice.
Conclusion
A top up loan on Home Loan is a smart way to manage unexpected financial needs without going through the process of taking a new loan.
It offers convenience, lower interest rates, and longer repayment tenures. L&T Finance ensures a smooth application journey with minimal documentation and quick disbursal.
Whether you are planning a major life event or want to cover personal or professional needs, understanding your Home Loan top up eligibility and applying at the right time can help you meet your goals without financial stress.
