How to Apply for a Top-Up Loan on a Home Loan

A loan is a complex concept, even for experts in other fields. Well, they can’t be blamed since finding the right shore in the world of finance is quite difficult. People are still afraid to avail of home loans since there might be risks of hidden costs or extra charges or taxes.

With the Bank of Maharashtra, a home loan is as transparent as it gets. But, in these times where extravagance and luxury are becoming part and parcel of every person’s dream home, Top-up loans have gained immense importance that can be availed on your home loans.

Home renovation/extension/furnishing? Management of an unexpected financial need? Funding a significant life event? The Bank of Maharashtra's top-up loan is a convenient and seamless solution.

Top-up loans are an enhancement of your home loan, and this article will tell you everything about a Home loan top-up and how to apply for it.

Understanding Top-Up Loans

So, what is a top-up loan on a home loan? Consider top-up as a delightful loan amount offered over an existing home loan. However, a top-up comes with an added edge. This is a multipurpose loan amount. Other loans need a specification; however, top-up gives the flexibility to be used for personal or professional needs.

This is why top-up loans are among the most convenient options for homeowners with a home loan who need extra funds.

Benefits of Top-Up Loans

There are six major benefits if you avail a home loan top-up. These loans offer funds at lower interest rates compared to personal loans. These loans are generally offered at 20 BPS or 0.2% points higher than the original home loan interest rate.

Moreover, you also open doors to flexible repayment options of up to 15 years. Additionally, suppose you use your top-up loan for home renovation or repair. In that case, a tax benefit on home loan top-up can also be availed, making it an informed financial decision.

Top-Up Eligibility Criteria

Understanding a home loan top-up eligibility can be walking through a fog if not directed properly. However, with the Bank of Maharashtra’s customer-centric criteria, you will not feel the need to be guided across, though our representatives will always be there to direct you.

Some of the ground rules for availing of a top-up are:

- Having a consistent repayment record for your current home loan

- Meeting certain income and credit passing standards.

The home loan top-up eligibility criteria are set to ensure that the extra loan burden does not become a financial disaster for the borrower.

Bank of Maharashtra’s Top-Up Loan Offerings

The Bank of Maharashtra top-up loan interest rate is priced at a competitive rate. It is generally 20 basis points, or 0.2% points, greater than the original home loan interest rate. Moreover, the home loan top-up interest rate is significantly lower than personal loan rates, and hence, it is also an attractive option for borrowers.

Along with this, gaining some more tax benefits on a home loan top-up makes this loan a perfect choice for borrowers. It is an economically beneficial option. The Bank of Maharashtra also offers top-up loans for its previous customers. Those who took a home loan previously with a maximum tenure of 180 months can also avail of top-up loans.

How to Get Top-Up on Home Loan

Since we are aware of top-ups now, let’s understand how to get top-ups on a home loan. With the Bank of Maharashtra, the process becomes straightforward, transparent, and customer-centric.

You simply need to visit the nearest Bank of Maharashtra branch or go the digital way and use our official website. Our customer service representatives will guide you through this process and address all your concerns.

Application Process

Now, let’s understand how to apply for a top-up loan. Like any other loan grant process or a simple bank account opening, this process involves submitting an application form along with the necessary documents.

The Bank of Maharashtra ensures hassle-free and quick processing of your application since we know the urgency that comes with having to avail of a top-up loan.

Document Requirements

The documents required for a Top Up loan generally include Officially valid ID proof, address proof like a light bill, income statements, and other relevant financial documents.

Making an Informed Decision

While you choose to avail of a top-up loan, it’s vital to evaluate your financial health and add the new burden of having a top-up. Moreover, you should also pay close attention to your current EMI obligations, income stability, and future financial goals. Being a nationalised bank, we always suggest everyone borrow within their means and financial repayment plans.

Bank of Maharashtra’s Commitment

At the Bank of Maharashtra, we aim to provide beneficial and accessible financial solutions for our customers from various age groups and parts of the country.

In addition, the Bank of Maharashtra top-up loan interest rate is among the most competitive in India’s financial loan industry. As a reliable bank, we believe in building lasting relationships with our customers.

Author: Bank of Maharashtra
Date of Publish: 12 Mar, 2024