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Use Top-Up Loan For Home Renovation

· Top Up Loan

Top up loan is a facility provided by banks and other non-banking financial institutions as well that allows you to borrow a certain amount of money over your existing home loans. This loan simplifies the financing process and helps you in saving time.

Why top-up loan is beneficial for the Home Renovation?

  • Quick approval

The first and the foremost advantage of the top up loan is that it approves quickly as compared to other loans.

  • Tax Benefits

Like home loans, top up loans also help in claiming tax benefits. This advantage includes a deduction of up to Rs 1.5 Lakhs on the principal repayment under section 80C. However, one thing must be noted that if the property is sold within 5 years then the tax benefit on the top up loan will be overturned.

  • No Mortgage required

Another major advantage of availing top-up loans is that it requires no mortgage. Since you have already applied for home loans and then apply for a top-up loan thus they’ll ask for no mortgage.

  • Interest Rate

Top up loans often charge 0.5 to 2% higher than the home loan interest rate but still, it is comparatively lower than personal loans.

  • Tenor

These loans can last for 10 years. In contrast, personal loans have a tenor of 5 years. If you need a high loan amount for renovations, then you should go for top-up loans. It will also help you in repaying that amount with less hassle.

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