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Explaining the Nuances of a Top-Up Loan on a Home Loan

· top up loan

Owing to the extent of the modifications we do with our new property, more often than not, the Home Loan which was availed falls short and we have to drain our savings. What these individuals do not know is that there is another option available which is known as top-up loans.

A Top Up Loan is an additional loan provided by some of the most reputed lenders which help in covering the additional expenses which can crop up later. However, the availability of such a top-up will depend on the reputation of the lender and will be subject to meeting the terms and conditions laid down by the lender.

While many people opt for personal loans to cover up the additional expenses, they end up losing more money in the process because the interest rates of personal loans are higher in comparison to Home Loans. In contrast, a top-up loan is an extension of your already existing Home Loan with the same rate of interest but with higher tenor so that you have more time to repay back the loan.

This finally brings us to the question of eligibility. While the eligibility varies from one lender to the other, the most basic one being you will get a top-loan only if you have an already existing Home Loan with your lender.

In order to avail this facility, you need to approach your lender and speak to them about availing this. The documentation needed has already been submitted at the time of availing the Home Loan so no additional documents are needed. Most reputed lenders have made this process online so all you need to do is visit the website of your lender for more information as the approval will be dependent on your repayment history. The amount for your top-up loan and its repayment period will thus vary according to your profile.

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