A top-up loan lets you borrow additional funds on your existing loan without applying for a new one.
- The loan tenure does not change. The maximum tenure remains 3 years from the date of the initial loan. If your loan started on 1 September 2025 and you take a top-up on 1 March 2026, the loan still ends on 31 August 2028.
- The minimum disbursal amount for a top-up is Rs. 2,500.
- Your interest rate does not change, even if the total loan moves into a higher slab.
Charges and conditions
- A processing fee of 0.25% + GST, or Rs. 25,000 whichever is lower, applies on the top-up amount.
- Top-up loans cannot be availed within 90 days of loan maturity.
- If your top-up request exceeds your sanctioned limit, a processing fee plus Rs. 500 stamp duty is charged.
Why your top-up may be lower than what you applied for
Zerodha Capital maintains a 1% LTV buffer when processing top-up requests, so your post-disbursement LTV does not exceed 49%. This buffer below the regulatory limit of 50% reduces the chance of your loan immediately entering a shortfall because of minor market movements.
Example
- Outstanding loan: Rs. 2,47,500
- Current value of pledged securities: Rs. 5,00,000, so current LTV is 49.50%
- You pledge additional securities worth Rs. 40,000, taking the total to Rs. 5,40,000 and the LTV to 45.83%
On the additional collateral you become eligible for Rs. 18,000 (45% of Rs. 40,000). But disbursing the full Rs. 18,000 would take your outstanding to Rs. 2,65,500 and your LTV to 49.17%, which is above the 49% buffer.
So instead, Rs. 17,100 is disbursed, taking the outstanding to Rs. 2,64,600 and keeping the post-disbursement LTV at exactly 49%.