5 Benefits of a Top-up on your Home Loan

For borrowers who have availed a Home Loan and yet want to avail another loan for their other needs don’t have to apply for a regular personal loan. Why? It is because along with a Home Loan or a Home Loan balance transfer, leading lenders also offer a facility called a Top Up Loan.

Yes, a Top Up Loan is nothing but an extended facility that lenders extends to all Home Loan borrowers which is akin a personal loan only, but with a higher amount.

A Top Up Loan lets you borrow a loan for an amount of up to Rs.50 lakh at a reduced rate of interest. What’s more, you also get to repay the loan on an extended tenor just like your Home Loan.

A Top Up Loan has many more fabulous benefits which can work in your favor if you manage it accordingly. Have a look!

  • Nominal or Low-Interest Rates

Compared to personal loans which lend you money at a higher rate of interest like 17-20%, the interest rates levied on a Top Up Loan varies only between 8-12%. Yes, since a Top Up Loan is an extended facility under a Home Loan only, lenders make it affordable for you by offering it at a lower interest rate. Thus, if you think you may have other financial needs even after availing a Home Loan, a Top Up Loan will be a super-saver option compared to high price personal loans.

  • No Additional Collateral or Security Needed

Top Up Loans application does not need of extended security or collateral because it’s an extended provision alongside a Home Loan and not a fresh one. Hence, you are free to apply it or just request for it and grab it without extra formalities or paperwork.

  • Appropriate Tenor

You should know that a Top Up Loan always has an extended tenor such as a tenor available on your Home Loan. Suppose if your Home Loan tenor is for 20 years, you also get 20 years to repay your Top Up Loan, making it easier to manage.

  • Quicker Application Procedure than Applying for a Fresh Loan

A Top Up Loan type does not require you to go through the entire procedure of a loan application like in the case of a new or fresh loan application. Since you have already completed all your loan application formality while availing the Home Loan, you don’t need to do double work. Thus, when you apply for a Top Up Loan, your applications get approved quickly saving you lot of time that you would have wasted while applying for a fresh loan.

  • A Top Up Loan is a Feasible Finance Source   

You may need funds during various stages of life for various needs. You may need money to renovate your home, fund your child’s education, pay hospital bills during an emergency, go abroad on a vacation and more. That’s when you can look up to a Top Up Loan to cover up for all needs.

The Bottom Line

A Top Up Loan is a viable funding source if you have some immediate need of money after you have availed a Home Loan. Go and figure out the ways to get benefited from a Top Up Loan as stated above and make the most of

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