1.Top-up home loan is a facility provided by lenders to borrow a certain amount over and above the home loan.
2.This loan can be used to furnish or renovate your home, or also towards personal expenses.
3.Anyone who has taken a home loan and has completed one year of repayment without missing any EMIs is eligible for a top-up home loan.
4.The interest rate is slightly higher than the home loan and the tenure depends on the lender.5.Tax benefits can be claimed if the top-up home loan is used for repairing or refurbishing the home, or for constructing an additional room.
Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
Source Link
