This facility is very useful for people needing urgent funds, especially towards registration or furniture for the new house. And, unlike a personal loan, on which one pays a higher interest rate, in case of a top-up, the interest is not as low as the home loan rate, but a lot lesser than the prevailing personal loan interest rate. A top up loan on your existing home loan is an ideal choice to pay for your parking space or for furniture to move into the new house on possession. Moreover, if the top-up is being directed towards the parking spot, which is part of property acquisition—you would be eligible for a tax rebate on both the principal and interest, inclusive of the rebate you are availing for the existing home loan.