Do you have an existing Home Loan, and also urgently need some funds for business, medical emergency, and an upcoming wedding? You can easily avail a Top Up Loan from leading online lenders at a lower rate and a longer tenor and cover your needs.
Yes, a Top Up Loan amount could be as high as Rs.50 lakh depending on your lender and helps you cover other needs without paying extra money. Thus, a Top Up Loan:
- Saves your time
- Is easier to acquire
- Comes with a long repayment tenor
- Is affordable than other commercial loans
What is a Top-up Home Loan?
A Top Up Loan is nothing but an additional facility for acquiring more funds on an ongoing Home Loan. If you have a Home Loan which you are repaying and if you need more funds, you can avail a Top Up Loan and do it without hassles.
As a result, you also avoid going through the formalities of applying for a loan once against. What’s more, you also save on interest rate on what you would have done on availing a fresh loan. Yes, your Home Loan’s documentation and collateral are enough to get more funds. Providing some basic papers should do it for you.
Who can Apply for a Top-up Home Loan?
You can avail a Top Up Loan from a lender if you have an ongoing loan facility which may include Home Loan, Home Loan improvement loan or Home Loan Balance Transfer.
A borrower can repay the Top Up Loan in smaller EMIs as you can easily spread the loan cost over longer tenor. How much time you will be given to repay the loan depends on your financial profile, age at loan maturity and on other factors. Also, a loan tenor may also depend on the repayment scheme selected by you.
Maximum Loan Amount
As discussed earlier, the maximum Top Up Loan amount that can be disbursed to you may be Rs.50 lakh or less. It may also depend on your present income, another loan EMIs and more. Overall, a Top Up Loan amount may not exceed 70-80% of the total valuation of the property.
Top Up Loan Interest Rate
Basically, the interest rate applicable to Top Up Loans should be within the same line as that your Home Loan or a bit more. However, a borrower may be confident that the final interest rate on the Top Up Loans should be lesser than other consumer loans.
Purposes for which you can Avail a Top Up Loan
- A borrower is free to apply for a Top Up Loan for many reasons such as:
- An upcoming wedding ceremony
- An urgent medical emergency
- Education expenses
- Home furnishing or home improvement needs
- Debt consolidation
- Other personal needs
Top Up Loan Advantages at a Glance!
- A Top Up Loan is laced with many advantages such as:
- Loan availability for a number of professional and personal needs
- Negligible documentation and quicker loan processing
- A lower rate of interest
- Longer tenor to suit your needs and monthly outflow
- Hassle-free EMI repayment method
The Bottom Line
Now that you are aware of the basics of the Top Up Loan that you can avail if you have an ongoing Home Loan, you can easily apply for it online and enjoy its advantages. No matter what you need is, a Top Up Loan will cover it without hassles.
Why wait and avail a fresh loan at a higher rate when you have the benefit of a Top Up Loan? Assess your needs, repayment capacity and apply online accordingly!