look news india
Top-up Home Loan: Have you ever been offered a top-up home loan by a bank? The name suggests that it is a loan related to home loan. Let's know what it is and what are its benefits. Actually, many times home loan customers need money to buy or build a house or for other works. In such a situation, these customers can take a top up home loan instead of taking an expensive personal loan.
Interest rates remain low
The interest rate on top-up home loan is low. Apart from this, the customer also gets a good deal. Top-up home loan is given to those customers who have already taken a home loan. If you need additional funds apart from the home loan, then top-up home loan is a good option.
Benefits of Top-up Home Loan
- A top up loan gives the customer a better deal than his existing lender. This reduces your overall cost of borrowing.
- Top-up home loans allow customers to avail additional loan over and above their existing loan amount.
- If the customer repays the home loan for 12 months without missing any EMI, he becomes eligible to get a home loan top-up.
- Top-up home loan is very beneficial for customers if you opt for a shorter repayment term.
- Often there are some additional expenses over and above the home loan. Home loan top up will cover these expenses.
- Top up home loan is an affordable solution to manage your debt.
- The interest rates on top up home loans are usually slightly higher than the regular home loan rates. These rates also depend on the customer's profile.
- The amount sanctioned by the bank will also depend on the monthly installments paid on the regular home loan. This will save you from having to apply separately for a personal loan.
- The difference between home loan and top-up home loan rates is usually between 1 to 2 percent.
- The tenure of top-up home loans varies from bank to bank. For example, State Bank of India offers top-up home loans for a tenure of up to 30 years.
