A Home Loan helps you to purchase your dream home and own it forever. But, you should enjoy some other benefits also that will cover other financial needs of your life. The facility is top up loan. If you have chosen the right lender for your Home Loan, you can directly avail the facility or you can opt for the Home Loan balance transfer to enjoy it.
What is a Top Up Loan?
A Top Up Loan is an extra add-on loan given over and above the Home Loan, available at a lower interest rate and longer tenors. Such loan can be applied up to Rs.50 lakhs. The eligibility criteria of a top up loan is very simple and as you have already submitted documents while applying for a Home Loan, there is no further verification.
Not all financial institutions have the facility of top up loan, but still many online and reputed lenders such as banks and non-banking finance companies (NBFCs) are offering it.
In case, your existing Home Loan lender does not provide the facility, you can opt for a switch of your Home Loan from one lender to another to enjoy a better interest rate. This is known as Home Loan balance transfer. Make sure the second lender is offering you the facility of the top up loan.
Lender will only check your consistent repayment history and will offer you a top up loan up to Rs.50 lakhs.