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Update Date : 03-Jan-2023

Created Date : 03-Jan-2023

Category : Home Loan E-Book (Promotional_BT)

All about home loan top-up

Home loan top up as good as a personal loan so, all existing borrowers can avail of it for managing any of their personal expenses like renovating their house, going on a vacation, consolidating loans or starting a business and so on.

Since the home top-up loan is backed by collateral, it usually carries a much lower rate of interest as compared to unsecured personal loans.

The funds under a “top up” loan are disbursed directly into the borrower’s bank account which they can use for any purpose they want except for activities that are illegal or speculative in nature.

However, it should be noted that it loan is an extension of a home loan, it is available to existing home loan borrowers only.

FEATURES OF HOME LOAN TOP UP

The following are some of the features & benefits of a top-up loan.

1. Qualification – Top-up loan is an extension of home loans. Hence, only existing home loan borrowers qualify to avail of this facility.

2. Eligibility – The eligibility of top-up loans is largely determined by 2 variables, the fair market value of the property and the net monthly income of all applicants.

3. Reasonable terms – Since top-up loans are backed by collateral, it is available at very reasonable terms. Low interest rates and high tenure helps you save money and keeps your EMI low as compared to unsecured personal loans.

4. Higher loan amount – Low interest rate and high tenure helps applicants secure this loan quite easily and with much higher limits as compared to unsecured personal loans.

5. Flexibility – The funds under top-up loans are disbursed directly into the applicant’s bank account. Hence, the money can be put to any of one’s personal use except for activities that are illegal or speculative in nature.

BENEFITS OF HOME LOAN TOP UP

1. Helps during emergencies – You can use it to combat situations like financial crisis like hospitalization, a set of unavoidable expenses that comes up unexpectedly and so on.

2. Accommodates personal expenses – It can very comfortably accommodate many of your planned expenses at reasonable terms like home renovation, planning a vacation, taking higher education, starting a business and so on.

3. Debt consolidation – Consolidating multiple loans & closing expensive debts is one of the best use that one can put top-up loans to.

4. Creating contingency fund – If you are sensing a situation like a job scare hitting you anytime soon and you are unprepared for it, you can get an OD limit sanctioned before the crisis strikes.

5. Creating investment reserves – Many borrowers who are unable to save & invest often use top-up loans for creating investment reserves.

6. And more…