8 Things To Know About Top-Up Home Loans

Outlook Money

What Are Top-Up Home Loans?

It is a type of loan facility offered by banks and housing finance companies to existing home loan borrowers.


Lower Interest Rates

Top-Up Home Loans are secured against properties and come with lower interest rates than personal loans.

Interest Rate

Tax Benefits

Under Section 24(b) of the Income-tax Act, 1961, the interest paid on top-up home loans is eligible for tax deductions.

Tax benefits

Other Benefits

Top-up home loans can help cover education-related expenses, such as tuition fees, lodging, etc.

Education Expenses

Cover Medical Emergencies

Top-up home loans can also help pay hospital bills and other medical expenses.

Medical Emergency

Risk To Property Ownership

Since these loans are secured against the property, default in loan repayments can attract the risk of foreclosure proceedings.  

Compiled by Syed Muskan.