Top-Up Loans
Top-Up Loans

Many of us are aware of the loans provided by financial institutions like a bank, credit union, etc. However, a lot of us don’t know about top-up loans provided by these institutions. Today everything is expensive. People take loans to buy things, which may be as large as a property or as small as a laptop. Banks and other institutions are always there to provide loans to people who are facing financial problems. Top-up loans are those which are provided over and above house loan. Indifi is one such leading online lending platform that provides business loans to small and medium-sized enterprises (SMEs). Before going into top-up loans, let’s know a little bit about different types of loans offered by financial institutions.

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These are loans in which the borrower has to offer up some kind of collateral like a car or a house in case he is unable to pay back the loan on time.


Loans are taken for various reasons such as a wedding, or for buying things for personal use, etc. In an unsecured loan, the borrower doesn’t get the collateral back in case he is unable to repay the loan.


A business loan is taken to optimize the growth of the business.

However, these are generally available to the large-sized businesses because loans are offered based on collaterals which small-sized industries are usually not able to pay. Indifi is one such platform which provides loans up to Rs.50 lakhs to these small and medium-sized enterprises which have the potential and intent to grow.

Now, you might have many questions like what top-up loans are and its benefits. Well, let’s answer your question.

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 Top-up loans are those which are provided by banks and other financial institutions to the borrower over and above home loan based on your income and repayment capacity. It is an additional amount to your existing loan. Banks like HDFC, ICICI and Axis bank offers top-up loans.

Eligibility Of Top-Up Loans

Not everyone with a home loan is provided with a top-up loan. Banks usually check the past track records concerning the previous repayment of home loan and your repayment ability.

Interest Rates: The interest rate of top-up loans are a little higher than home loans but is quite cheaper than that on personal loans.

Tenure: The tenure for top-up loans varies from bank to bank. Generally, it is given for the outstanding period of the existing home loan, and it is higher than the repayment period given on personal loan.

Benefits Of Top-Up Loans

  • Interest rate is cheaper than that offered on a personal loan.
  • Tax deduction benefits are available for the interest portion under Section 24.
  • You can use a top-up loan to pay off another loan and even for personal uses. Bank does not monitor the utilization of this loan.
  • Since your documents are already with the bank, you need not provide all the documents. However, some updates might be required.
  • You can also repay the loan through convenient EMI options.


You can avail a top-up loan from the bank in which you have an existing loan based on your past repayment records the bank might give you an additional loan on the existing loan.

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You can apply from your existing lender if you have an existing loan and the lender is willing to offer you an additional loan. In case your current lender is not willing to pay, you can shift your active loan from your present lender to another through balance transfer.

If, for instance, we run out of petrol or diesel, we top up our car with the required fuel. In the same way, if we run out of money, we top up our existing loan. Top-up loans are beneficial and come to your rescue when you need it at the time of emergency. They have quite a lot of benefits, which have been mentioned above. Sometimes, we need a helping hand to fulfill our needs, and the top-up loan is one such loan offered by various banks to meet our needs.

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