Top-up loan scores over personal and gold loan: All you need to know

Here's how the interest rate on top-up home loans by different banks and institutes stack up

• A top-up home loan is a better option than going for a personal or gold loan as interest rates are much lower
• A borrower can use the loan for any purpose such as house repair, child's education, or even for business. But it cannot be used for a speculative purpose
• You can get a top-up loan 12 months after disbursement of the home loan and upon possession/completion of the financed property
• While the paperwork is lesser than taking a home loan, banks give the loan only if the borrower has a clean repayment track record for at least a year
• A borrower cannot claim income tax deduction under Section 80C for the principal portion of the top-up loan. The tax benefit is, however,  available on the interest portion if the money is used to acquire, construct, repair, renew, or reconstruct a house property