Different Top-up Loans in India

Different Top-up Loans in India

Last Updated : Sept. 1, 2020, 3:56 p.m.

To meet our needs and deal with any financial emergency, we have the option of taking different kinds of loans (personal loan, home loan, car loan, etc.). But what will you do if you already have a loan and still in need of some urgent funds? Well, you can take a Top-up Loan on your existing loan. Let’s understand it with an example – Suppose, you recharged your mobile with INR 200 for a month but exhausted the total balance with 10 days remaining in the month. So now, you will need to do a Top-up Recharge to get through the month. Similarly, lenders provide Top-up Loans in India over and above your existing loan amount when you need more money to fulfill your needs.

So, what exactly is a Top-up Loan? As it is evident from the name, a Top-up Loan is offered by banks, Non-Banking Financial Companies (NBFCs) or Housing Finance Companies (HFCs) to customers so that they can refill their existing loan. This existing loan can be a personal loan, a home loan or any other loan. In this article, we will cover everything related to the different types of Top-up Loans in India so that you can understand it better.

What are the Different Types of Top-up Loans in India?

By now, you must have understood about the Top-up Loan. As we said that a top-up loan is given to the customers who already have a loan. Since there are different types of loans (secured and unsecured) offered by lenders, there are different types of top-up loans too. Some of the most popular ones are Top-up on Home Loan, Top-up on Personal Loan and Top-up on Car Loan. We will be providing details about all of these top-up loans in India so that you can understand how each of them works. So, let’s start with one of the most popular loan options among customers – Home Loan.

Top-up on Home Loan

Lenders offer Home Loan to customers so that they can buy a home and pay the loan in easy installments. Home Loans are considered to be high-ticket purchases and usually given for a long period upto a maximum of 30 years. So, let’s say an individual has a 20-year Home Loan of INR 40 lakh. Now, after 5 years, you have an outstanding balance of INR 24 lakh. But now, you also want to do some renovation in your house or you need funds for some other reason. So, what will be the right option for you? Should you go for a Personal Loan or should you go for a Home Renovation Loan?

Apply Home Loan @ 8.65%* Rate

Well, in such situations, a Top-up on Home Loan could be the perfect option for you. The reason: lower interest rates as compared to other loans whether it is a personal loan or any other loan. You need to remember that Home Loan Top-up Interest Rates tend to vary from one lender to another. Also, the top-up facility can be availed by both new and existing customers, although the eligibility criteria can differ from one lender to another. We are showing some of the important details related to the Top-up on Home Loan below. Please have a look.

Loan Amount

The top-up loan amount will be decided by the respective lender after checking the applicant’s overall profile and repayment behavior. So, you cannot expect a fixed amount if you are applying for a Top-up on Home Loan. The final loan amount may vary from what you expected in the first place. For example, HDFC Bank allows its customers to opt for as high as INR 50 lakh as the Top-up Loan amount on the Home Loan.

Interest Rates

As we said, interest rates on a Home Loan Top-up are quite low as compared to a personal loan. Usually, lenders offer a bit higher interest rates than the rates given on your home loan. So, it would be a better option for you to fulfill your needs than going for a high-interest option of a fresh personal loan. Also, Home Loan Top-up interest rates tend to change from one lender to another. So, choose carefully.


The tenure for the Home Loan Top-up usually varies from one lender to another. But generally, the top-up loans are given for the remaining tenure of your home loan. Some lenders also provide the top-up loan over the home loan tenure.


This is one of the most important things when going for a Top-up on your home loan. Any lender will check the repayment track and past records of an individual to see if he or she is eligible to get a top-up on a home loan. An individual with a high credit score (700 or above) has a higher probability to be approved for a Top-up as compared to an individual with a poor score.

Top-up on Personal Loans

Same as the Top-up on a Home Loan, lenders also offer top-up on the personal loan facility. As you know, a personal loan is the number one option among customers when they need urgent funds. Personal Loans can be taken for a maximum of 5 years. Let’s say you have an existing 5-year personal loan of INR 5 lakh. But before the completion of tenure, you need more money. In this situation, a top-up on a personal loan could be the perfect option for you as you will get the extra loan amount over and above your existing loan amount.

Apply Personal Loan @ 10.75%* Rate

A Top-up on your personal loan can be the right solution for your different financial needs. Since a personal loan is an unsecured loan, a top-up on your existing loan will also be given without any security. So, if you don’t have security, you don’t need to worry. We are showing some of the important things about the Top-up on the personal loan below. Do check out.

Loan Amount

In case of a Top-up on Personal Loan, lenders offer an additional loan amount above your existing loan amount. This additional fund can vary from one lender to another and depend on several factors such as your overall profile, repayment capacity, monthly income, past repayment behavior, etc. After going through all these factors, the lender decides the final top-up loan amount.


There is no specified tenure for a Top-up Loan on a personal loan. Some lenders provide the top-up that you need to pay within the original tenure while some provide the amount more than your original tenure. So, it varies from one lender to another. The best part about a Top-up Loan is that customers can repay it via flexible monthly installments. You can either pay a consolidated EMI covering both your top-up and original loan amount or you can pay two separate EMIs for two different loans.

Interest Rates

You need to remember that the interest rates on Top-up Loans are slightly higher than the existing personal loans. But it may vary for one individual to another based on his/her repayment behavior, credit score, monthly income, etc. Lenders always check these factors before deciding the final rate of interest on your top-up loan.


A top-up on a personal loan can only be applied by the existing customers of a lender. Other than this, if your lender is not providing the top-up facility on your personal loan, you can transfer your outstanding balance to some other lender and apply for a top-up on that loan amount. But above all this, a lender makes sure that an individual has a clean repayment track to reduce the credit risk, and this is generally done by checking the credit score of an individual.


Since a top-up on a personal loan is only given to the existing customers, the documentation is quite minimal. An applicant has already an existing relationship with the lender, so there is no need for additional documentation. Also, the documentation criteria tend to change from one lender to another. Also, the processing time is quite fast in case of a top-up loan.

Top-up on Car Loan

Do you know that you can opt for additional money over and above your existing car loan amount with the help of Top-up on your car loan? Let’s say you have a car loan and suddenly you find yourself looking for urgent funds? In such a situation, customers who already have a car loan can easily opt for a Top-up from a lender anytime during their tenure. We are showing some of the important details related to the Top-up on Car Loan. Please check out.

Apply Car Loan @ 7.45%* Rate

Loan Amount

So what is the top-up loan amount that you can get? Well, the top-up loan amount tends to vary from one lender to another and is decided according to the customer’s past repayment behavior and overall profile. For example, HDFC Bank offers a top-up on Car Loan upto 150% of the original value of the Car. Similarly, Axis Bank offers a top-up loan amount upto 150% of the overall price of the car. So, you should check with your respective lender to see what top-up loan you can get.

Interest Rates

Interest rates of Top-up Loan usually tend to vary from one lender to another. Other than this, lenders also check several factors such as monthly income, past credit behavior, credit score, repayment capacity, etc, before deciding the final rate of interest for you. For example, Axis Bank Top-up Loan Interest Rates range from 14.60% to 16.60% per annum for both loans above and below the tenure of 36 months.


Lenders offer you a flexible repayment period ranging from 12 to 84 months (7 years) within which a customer can easily repay the top-up loan amount via EMI. Choose the tenure according to your repayment capacity so that you can pay your dues on time. Missed repayments of top-up on a car loan can hurt your credit score badly.

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