Top Up Home Loan
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.
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