1 min read
25 May 2021

Home renovations are required from time to time to enhance the value of your house and to meet the evolving needs of your family. While comfort is one aspect to look into, you can also focus on making your home more energy-efficient or eco-friendly. Since these upgrades can add pressure on your short-term finances, an ideal way to fund your home renovation is to get a top-up loan.

Here is all you need to know about a top-up loan:

When you have an existing home loan that you are paying off, you can get an additional loan called a top-up loan. Take a top up loan. from Bajaj Finserv and use the additional funds to furnish your home, or to finance any other need at nominal interest and a long repayment tenor.

Take a look at the key features of this loan.


A top-up loan is usually used to furnish, set-up or revamp a home. Bajaj Finance offers top-up loans to you when you opt for a home loan, as well as a home loan balance transfer. It has easy eligibility criteria with minimal documents as you already have a loan account with your lender. So, applying for it is simple and hassle-free.

Additional Read: 6 Factors That Can Affect Your Home Loan Eligibility


This loan gives you access to funds at a much lower rate. Therefore, it is a far more affordable option, as compared to applying for a fresh personal loan, for example. It also enjoys the same long tenor of your home loan, which makes EMIs even more affordable.

Tax benefits:

When you use a top-up loan for home renovations you are eligible for tax benefits on the interest portion of the top up loan, up to Rs.1.5 lakh, under Section 24. This is inclusive of the tax deduction that you claim on your home loan’s interest payments. Besides, if you use the top-up loan for home-related expenses, you can get deductions on the principal amount as well, up to Rs.1 lakh. This limit is also for the principal of the original loan as well as the top-up loan.

Additional Read: 5 Costs To Consider When Planning A Home Renovation

So, don’t put off home renovations until you can save the required amount. Use a top-up loan to your advantage to improve your home without significantly altering your monthly outflow.

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