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Home Loan Top-Up and Balance Transfer Advice Needed

Hello Technofino Community,

I currently have a home loan with ICICI Bank that was taken for purchasing an empty plot. The current interest rate on this loan is 9.4%, and I am exploring two options:
  1. Top-Up Loan: Is it possible to top up my existing home loan with ICICI Bank for additional funding?
  2. Balance Transfer: I am considering transferring my loan to another bank that offers a lower interest rate and also allows me to avail of a top-up loan.
I also have an HDFC Imperia account and an IDFC Wealth account, and I’m wondering if these could help me negotiate better interest rates or terms with either of these banks or any other banks.
 
Hello Technofino Community,

I currently have a home loan with ICICI Bank that was taken for purchasing an empty plot. The current interest rate on this loan is 9.4%, and I am exploring two options:
  1. Top-Up Loan: Is it possible to top up my existing home loan with ICICI Bank for additional funding?
  2. Balance Transfer: I am considering transferring my loan to another bank that offers a lower interest rate and also allows me to avail of a top-up loan.
I also have an HDFC Imperia account and an IDFC Wealth account, and I’m wondering if these could help me negotiate better interest rates or terms with either of these banks or any other banks.
Home loan transfer is very tedious process, you need to pay for new bank again for processing fee, assessment fee etc..

Top up loan you get will be of higher interest than the home loan by atleast 0.5-2% more.

If in need, then top up is better.

In feb RBI policy meet , rate cut is on cards, so loan rates will be down soon.
 
Hello Technofino Community,

I currently have a home loan with ICICI Bank that was taken for purchasing an empty plot. The current interest rate on this loan is 9.4%, and I am exploring two options:
  1. Top-Up Loan: Is it possible to top up my existing home loan with ICICI Bank for additional funding?
  2. Balance Transfer: I am considering transferring my loan to another bank that offers a lower interest rate and also allows me to avail of a top-up loan.
I also have an HDFC Imperia account and an IDFC Wealth account, and I’m wondering if these could help me negotiate better interest rates or terms with either of these banks or any other banks.
Icici is best among hdfc & idfc
9.4 if okiesh

Don't go much into banking program status it's empty badge

Practical steps to save money is
1- pre payment. Even 1 rs pre payment saves 3 rupees if it's done within 5 year of loan distribution as in starting you pay more towards intrest & less towards principal

Any pre payment goes 100% to principal and in that icici is most chill private bank atleast from hdfc & icici

U can check hsbc or sbi maybe bob
 
This is Q4. Also rate cut is on cards and probably it will happen in Feb. Suggest going to the nearest SBI branch and talk to the officials and negotiate with them. Usually SBI HL rates are competitive and a bit lower than the private banks and pre-payment options are really easy. Just check.
 
Hi,

I have some query, I am currently in need of money let say 25L (actually more) for some uncertain reason to clear some debts which I never took, So trying to get through loan with lowest interest, I have ongoing hdfc home loan with 88L at 8.5% from April 2024 in which I have already prepaid some so EMI has reduced around 70k from 79k (current emi is 35k as all demand not disbursed). Current property is under construction & almost 40% demand is fulfilled with loan amount.

I was looking for personal loan with lowest interest then I found many comments stating we can take top up if existing home loan is going on instead of personal loan which will save my interest rate. But I am unsure how it works because current home loan amount gets credited directly to builder account so how this top up works? How I can I use this top-up for my personal need to clear debts? How I can take into my savings account? Is there anything which I should be aware? Will I get at same 8.5% or current one. I thinks rates are not changed yet. My current cibil is above 790+.

Please advise, Thank you
 
Hi,

I have some query, I am currently in need of money let say 25L (actually more) for some uncertain reason to clear some debts which I never took, So trying to get through loan with lowest interest, I have ongoing hdfc home loan with 88L at 8.5% from April 2024 in which I have already prepaid some so EMI has reduced around 70k from 79k (current emi is 35k as all demand not disbursed). Current property is under construction & almost 40% demand is fulfilled with loan amount.

I was looking for personal loan with lowest interest then I found many comments stating we can take top up if existing home loan is going on instead of personal loan which will save my interest rate. But I am unsure how it works because current home loan amount gets credited directly to builder account so how this top up works? How I can I use this top-up for my personal need to clear debts? How I can take into my savings account? Is there anything which I should be aware? Will I get at same 8.5% or current one. I thinks rates are not changed yet. My current cibil is above 790+.

Please advise, Thank you
Speak to bank.. It will be treated as a separate loan.. it will be basis valuation of your property.. everything will be like a fresh loan including a CIBIL hit + all verifications + financial docs etx. Interest rate will also be the current prevailing one....
 
Hello Technofino Community,

I currently have a home loan with ICICI Bank that was taken for purchasing an empty plot. The current interest rate on this loan is 9.4%, and I am exploring two options:
  1. Top-Up Loan: Is it possible to top up my existing home loan with ICICI Bank for additional funding?
  2. Balance Transfer: I am considering transferring my loan to another bank that offers a lower interest rate and also allows me to avail of a top-up loan.
I also have an HDFC Imperia account and an IDFC Wealth account, and I’m wondering if these could help me negotiate better interest rates or terms with either of these banks or any other banks.
yes.. give icici a chance.. tell them to lower interest.. explore top up... else explore.. get quotes and then negotiate... BT now are available are around 8.5%
 
Speak to bank.. It will be treated as a separate loan.. it will be basis valuation of your property.. everything will be like a fresh loan including a CIBIL hit + all verifications + financial docs etx. Interest rate will also be the current prevailing one....
Sure but how it works , do they send in our savings account? I hold salary account in HDFC. & Do they allow it for personal use like I stated. & By Validation you mean max loan eligibility right? I think it was around 1.10cr that time.
 
Sure but how it works , do they send in our savings account? I hold salary account in HDFC. & Do they allow it for personal use like I stated. & By Validation you mean max loan eligibility right? I think it was around 1.10cr that time.
Yes Home Loan top up is for home improvement which will be credited to your own account.
But check with bank as it is generally given after home is constructed (I am not sure).
 
Yes Home Loan top up is for home improvement which will be credited to your own account.
But check with bank as it is generally given after home is constructed (I am not sure).
If it's home improvement it can be interior design, in that case it should be given atleast at 85-90% completion of construction right? Anyway I will check with bank.
 
Sure but how it works , do they send in our savings account? I hold salary account in HDFC. & Do they allow it for personal use like I stated. & By Validation you mean max loan eligibility right? I think it was around 1.10cr that time.
yes.. u will get the money directly not builder... Usage has some restrictions ( like speculation etx.) chk with bank on that.. not sure if they give top up for under construction property
 
Hello Technofino Community,

I currently have a home loan with ICICI Bank that was taken for purchasing an empty plot. The current interest rate on this loan is 9.4%, and I am exploring two options:
  1. Top-Up Loan: Is it possible to top up my existing home loan with ICICI Bank for additional funding?
  2. Balance Transfer: I am considering transferring my loan to another bank that offers a lower interest rate and also allows me to avail of a top-up loan.
I also have an HDFC Imperia account and an IDFC Wealth account, and I’m wondering if these could help me negotiate better interest rates or terms with either of these banks or any other banks.

I think your best way forward is to talk to multiple banks, ask for their offers and compare them with each other.
Normally, some brokers will take care of the upfront stamp duty, etc. other costs from their commission that they get. However, you are more likely to get a much better rate if you talk to the banks directly & negotiate hard. The bank teams have room to lower rates and have further room to lower rates by taking approval of higher authorities.

Start with a target of the lowest rates generally being offered by any bank and see where you land. Hopefully, much lower than the existing rate.

Since you are looking for top up, on a total basis, you will probably be better off with existing lender even if interest from ICICI is higher than other banks by 0.1% - 0.25%, as it will help save you documentation time, costs, etc.

Hi,

I have some query, I am currently in need of money let say 25L (actually more) for some uncertain reason to clear some debts which I never took, So trying to get through loan with lowest interest, I have ongoing hdfc home loan with 88L at 8.5% from April 2024 in which I have already prepaid some so EMI has reduced around 70k from 79k (current emi is 35k as all demand not disbursed). Current property is under construction & almost 40% demand is fulfilled with loan amount.

I was looking for personal loan with lowest interest then I found many comments stating we can take top up if existing home loan is going on instead of personal loan which will save my interest rate. But I am unsure how it works because current home loan amount gets credited directly to builder account so how this top up works? How I can I use this top-up for my personal need to clear debts? How I can take into my savings account? Is there anything which I should be aware? Will I get at same 8.5% or current one. I thinks rates are not changed yet. My current cibil is above 790+.

Please advise, Thank you

Sure but how it works , do they send in our savings account? I hold salary account in HDFC. & Do they allow it for personal use like I stated. & By Validation you mean max loan eligibility right? I think it was around 1.10cr that time.

Please read the fine-print of the top up documentation carefully. Many people may tell you that it is OK and they'll manage all paperwork. However, you will be the one signing the documents so do read them once, as there will be lot of conditions that come attached with it.

Typically, 'home improvement' top-ups are given for furniture, white goods, etc. kind of improvements. They will ask you for some paperwork / invoice / quotation to say how much you plan to spend on such improvements.

The other type is LAP i.e. loan against property top up. These amounts generally have lesser restrictions.
 
I think your best way forward is to talk to multiple banks, ask for their offers and compare them with each other.
Normally, some brokers will take care of the upfront stamp duty, etc. other costs from their commission that they get. However, you are more likely to get a much better rate if you talk to the banks directly & negotiate hard. The bank teams have room to lower rates and have further room to lower rates by taking approval of higher authorities.

Start with a target of the lowest rates generally being offered by any bank and see where you land. Hopefully, much lower than the existing rate.

Since you are looking for top up, on a total basis, you will probably be better off with existing lender even if interest from ICICI is higher than other banks by 0.1% - 0.25%, as it will help save you documentation time, costs, etc.





Please read the fine-print of the top up documentation carefully. Many people may tell you that it is OK and they'll manage all paperwork. However, you will be the one signing the documents so do read them once, as there will be lot of conditions that come attached with it.

Typically, 'home improvement' top-ups are given for furniture, white goods, etc. kind of improvements. They will ask you for some paperwork / invoice / quotation to say how much you plan to spend on such improvements.

The other type is LAP i.e. loan against property top up. These amounts generally have lesser restrictions.

Not sure why my thread is merged 🙁

Anyways can you enlighten more on "LAP", how it's different than top-up? Is it's part of home loan? In both cases property is already mortgaged then what is major difference?
 
First send a mail to ICICI that you are getting better interest rates from other banks and are planning to switch over. They will offer you a lower rate to retain you.

In my case the interest was 9.4% and they offered me 8.75% to retain me. I still switched over to SBI as I was offered 8.5%.

Do consider the MOTD charges, CERSAI Stamp Duty and processing fees before switching over. I had no MOTD as my flat was still under construction so it was easier for switching over to SBI
 
Not sure why my thread is merged 🙁

Anyways can you enlighten more on "LAP", how it's different than top-up? Is it's part of home loan? In both cases property is already mortgaged then what is major difference?
LAP and Top Up are fundamentally the same. Top Up is when you have an existing loan running and you get a top up
LAP is when you freshly mortgage the property and take a loan where the property is not under any loan.
 
First send a mail to ICICI that you are getting better interest rates from other banks and are planning to switch over. They will offer you a lower rate to retain you.

In my case the interest was 9.4% and they offered me 8.75% to retain me. I still switched over to SBI as I was offered 8.5%.

Do consider the MOTD charges, CERSAI Stamp Duty and processing fees before switching over. I had no MOTD as my flat was still under construction so it was easier for switching over to SBI

Just a doubt, is it worth it? I mean its only for a quarter or two then again interest rates may increase/decrease. This SBI rate may go to ICICI rate, and ICICI rate stays same, its upto bank to decide but when we considering extra misc. charges like MODT, Stamp etc. which effectively reduces the money that you'll save in next 2 quarters with that reduced interest rate.

Looking your perspective when analysing these things, and to find something that I missed with above logic.
 
I too had same problem of 9.7% interest. Asked other banks also for balance transfer but not much benefit. Then someone suggested me to change loan type to repo rate linked. I filled a form, paid 1180/- and that's it. Almost 1% kam ho gaya interest rate after repo linked + changed Emi deducting bank to Icici from Axis which further reduced 0.1%. Currently it's at 8.6%. Then I took 5L top up loan also repo linked which is currently at 8.75%. You can try it. Mark solution or rate user helpful if benefited
 
Plus I will tell you very important information which less people know. Loan Emi interest rate is = Repo rate + 2-4% Margin which is bank's profit every bank charges us like us. Talking about Icici, this margin interest rate is variable and keeps on changing quarterly or annually. Now important hidden info - whenever this margin is increased, all existing loans Emi interest rates are increased automatically. But whenever they decrease it, they don't decrease loan Emi automatically. Icici has conversion form - They charge Rs.1180 and reduce your Emi interest rate to lowest. Regularly check the margin with bank and reduce it asap. Mark it solution or rate me as helpful user if benefitted.
 
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