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What is a Top Up Loan Benefits & Eligibility and More

Updated: July 19, 2022
What is a Top Up Loan Benefits & Eligibility and More

We all make budgets, but sticking to them is the difficult part. It has happened many times in our lives that certain things went beyond the budget we had initially planned, or that we find ourselves a bit short on funds, despite our planning. One common such instance is a home purchase through a loan.

A housing loan is usually taken up for paying the purchase price of the house. Other additional expenses such as brokerage, stamp duty, registration, and furnishing are often not included in the home loan amount. Moreover, you may also need a few extra funds to add some personal touches to your new home - such as remodelling the kitchen - so that your home is ready for your family. It is a possibility that you might need a few extra funds in fulfilling your goals for a dream home. For providing this requirement a solution, home loan top-ups are introduced.

What is a Top-Up Home Loan?

Before diving into top-up home loans let’s understand - what is a top-up loan?

A basic top-up loan means borrowing additional money on the money already borrowed. Similarly, a top-up loan on a home loan is an additional loan that you may be able to take up in case you are need a few extra funds. A housing loan top-up is provided as a personal loan and may not require entirely new documentation. Such loans are offered to customers with a good credit score, sufficient repayment capacity, and a good history of repayment.

Benefits of a top-up loan:

Taking a top-up loan has its benefits. Some of them are:


The approval of a top-up home loan is quick as only basic documentation may be requested. Funds disbursal is easy and thereby, easy financing.

Interest Rates

A personal loan from a new lender when you already have an ongoing home loan may be difficult to get, or may only be available at a high interest rate. In this case, taking a top-up on your home loan may be a better choice, as the top-up loan interest rate may be lower in comparison. Even though the housing loan top-up interest is higher than the home loan interest rate, it is lesser compared to that of a personal loan obtained from a new lender.


In the case of a top-up home loan, there is no need for providing additional security or collateral. Depending on the amount you need and your repayment capacity, you may need to add a co-applicant or guarantor so that your request gets approved.


Personal loans are provided with a shorter duration, whereas home loan top-ups may allow you to enjoy the benefit of longer tenure loans. The home loan EMI may be adjusted so as to include the EMI of the top-up loan. Please note that this will depend on the lender’s policy.

Eligibility Criteria for a Top-up on Home Loan:

Getting a home loan can turn out to be a hassle but being eligible for a top-up loan is simpler. The qualifying criteria for top-up loans are similar to basic home loans. In case you received a home loan from a lender, there is no guarantee that you will receive a top-up housing loan too. Lenders only provide this facility to eligible borrowers.

Some of the basic eligibility criteria are:

  • The age limit for taking up a top-up loan is between 21 years to 65 years of age.
  • The nationality of the individual shall be an Indian or a Non-resident Indian only.
  • The person shall be either salaried or self-employed.
  • The person shall have a good credit score and a high repayment capacity.

Must Read :Is 678 Credit Score Good or Bad?

The critical eligibility criteria include the following points:

  • The borrower must have repaid a certain number of EMIs (depending on the lender’s policy) to be eligible for a top-up loan amount.
  • No default / delay in repayment of EMIs in the previous year.
  • In case of any missed EMI payments, the same must have been resolved before the due date of the next EMI.
  • An excellent repayment history for at least one year is usually required for top-up loans.
  • The borrower must have a good credit score and sufficient repayment capacity.
  • This may also be possible when a borrower is attempting a balance transfer of home loan from the existing lender to a new lender. The new lender, in addition to providing the outstanding principal amount as a loan, may also offer the borrower a top-up amount, depending on the borrower’s eligibility and the lender’s policy.

How to get a Top-Up Loan from Grihashakti?

Creating a customer-friendly communication channel is important. SMFG Grihashakti has created a short and simple way of reaching the customer and knowing their requirements. All you need to do is

  • Visit the SMFG Grihashakti official website.
  • Select the “Apply Now” option.
  • Enter the information as per your requirements.
  • Upload the necessary documents.
  • Click “Submit.”

Once you have submitted your application, we will review the same and get in touch with you soon with the further steps. You can also track your application status for a better understanding of what is happening.

You can also get in touch with us by directly visiting your nearest SMFG Grihashakti branch.


A top-up home loan is flexible, especially considering your housing requirements. These loans are more personal in nature but have a lower interest rate charged. The benefits of such loans not only allow you to enjoy financially in the short term but in the long term too. You can acquire housing top-up loans quickly as the processing period is shorter, and no new documents need to be specifically created.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

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