Good repayment track record must for top-up loan: All you need to know

While the interest rate is attractive, the loan-to-value ratio imposes a ceiling on how much you can borrow

Top-up loan on a home loan can be used for any purpose — to repair or furnish your home, to meet personal needs such as a child's education or marriage, or to meet business expenditures 

The interest rate on a top-up loan is likely to be lower than on a personal loan and gold loan 

The processing time is also likely to be faster as the bank has already done its due diligence on you once, though it is not likely to be as fast as for a gold loan 

Interest rate on a top-up loan will be slightly higher than on a home loan from the same bank or housing finance company 

However, remember that the existing loan plus the top-up loan cannot exceed the loan-to-value ratio of the home loan 

You can only avail of a top-up loan if your repayment record is good