InvestorQ : How much loan amount can I get in a top-up loan and what’s the tenure like on these loans?
Pratik vyas made post

How much loan amount can I get in a top-up loan and what’s the tenure like on these loans?

Answer
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Swapnil Sarang answered.
2 years ago


If you are applying for a top-up loan, or an additional loan on your existing loan amount, banks will calculate an amount based on the value of your property.

Banks arrive at this figure by ensuring the total of the balance home loan amount and the new top-up loan amount does not exceed 70-80% of the property’s value although this can vary across banks.

Banks also consider a margin value of 10% to 15% to come up with the final maximum amount that can be sanctioned as the top-up loan.

While certain banks give you a maximum top-up loan of Rs. 25 lakh, some banks might offer you higher amounts. However, some banks may offer you higher loan amounts.

For example, while HDFC Bank offers you just Rs. 35 lakh, State Bank of India gives up to Rs. 5 crore as top-up loan.

With respect to tenure, a top-up loan features a maximum tenure of up to 10 years. However, this, like the loan amount sanctioned can vary from one lender to another. You’d be interested to know that some lenders allow you to get a top-up loan tenure equal to the outstanding tenure of your current home loan.

An important point to remember here is that if you choose a longer tenure on your top-up loan, you will have a lower EMI, but your interest pay-outs will be substantially greater by the time you finish paying off the loan entirely.