Top up Home Loan : Own home is everyone’s dream. Home is the biggest purchase in any person’s life. Often people take home loan to buy a house. Home loan is the longest tenure loan. Many times, even after taking a home loan, money is needed to buy or build a house or for other purposes. In such a situation, top-up home loan comes in handy. Instead of taking a personal loan with a higher interest rate, you can take a top-up home loan. The interest rate remains low in this. Besides, the customer also gets a good deal. Top-up home loan is offered to those customers who have already taken a home loan. If you need additional funds beyond the home loan, a top-up home loan is a good option. Let us know some special things related to top-up home loan.
Special features of Top-up Home Loan
- Top-up home loan allows customers to take additional loan over and above their existing loan amount.
- Many times there are some additional expenses apart from the home loan. Home loan top up can meet these expenses.
- On top up loan, the customer gets a better deal from his existing lender. This reduces your overall cost of borrowing.
- Top up home loan is an affordable solution to manage your debt.
- If the customer repays the home loan for 12 months without missing any EMI, he becomes eligible to avail home loan top-up.
- The amount sanctioned by the bank will also depend on the monthly installments repaid in the regular home loan. With this, you will not have to apply separately for a personal loan.
- Top-up home loans are quite beneficial for customers if you choose a shorter tenure for repayment.
- The tenure of top-up home loan varies from bank to bank. For example, State Bank of India offers top-up home loans for a tenure of up to 30 years.
- The interest rates on top up home loans are usually slightly higher than regular home loan rates. These rates also depend on the profile of the customer.
- The difference between home loan and top-up home loan rates is usually between 1 to 2 per cent.
