Top-up home loans work best when repaid quickly; avoid overleveraging
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar said some lenders add a markup of 1-2 percentage points to the home loan rate for top-up loans and noted tax benefits when the money funds renovation. He cautioned against using them for holidays or lavish buys, and suggested keeping total EMIs within 35% of monthly take-home pay.
More of Abhishek's views on debt and loans
The article explains top-up home loans, which existing home loan borrowers can take as an additional loan, amid reports that the RBI is watching this segment. It covers eligibility, interest rates, tenure limits, tax benefits for renovation, and the extra interest cost and debt-trap risk when such loans are stretched over long periods.
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Top-up home loans work best when repaid quickly; avoid overleveraging