First things first!
The Top Up Loan on Home Loan is a unique facility offered by leading online lenders to housing loan borrowers. Lenders extend the facility of the Top Up Loan on Home Loan to help Home Loan borrowers cover their vital needs at a lower rate of interest.
This post will talk about the concept, terms and conditions and benefits of the Top Up Loan on Home Loan.
What is a Top Up Loan on Home Loan?
Suppose you availed a Home Loan of Rs.50 lakh from a top online lender to fund your dream home. However, even after availing the housing finance, you feel that you need some more money to cover needs related to housing interiors, décor and more.
So, what are the options available? You can take a personal loan up to Rs.25 lakh and meet those needs. But the personal loan interest rates are higher and can go up to 15% or more and that’s why availing the Top Up Loan on Home Loan is a good idea.
Since the Top Up Loan on house loan is a loan that’s linked with your housing loan, prominent loan providers offer it just 2% more than the Home Loan interest rate.
What’s more, there are no repayment hassles you can easily repay in smaller EMIs. It is because all borrowers opting for a top-up loan get a tenor as wider as their Home Loans.
Another advantage of availing the Top Up Loan on Home Loan is the higher amount that it offers. You can get up to Rs.50 lakh from leading creditors to fund your needs without feeling the loan burden.
Top Up Loan on Home Loan Balance Transfer
The top loan facility is also available to borrowers who transfer their Home Loan accounts for the attractive interest rate to another lender. Once they opt for Home Loan transfer facility, they can ask for a Top Up Loan worth Rs.50 lakh in case if they need funds.
Why Availing the Top Up Loan is a Winning Move?
There are many reasons that may convince you to opt for the Top Up Loan on Home Loan. Here are some of the major benefits of the Top Up Loan:
- Easy Terms and Conditions – Many people don’t want to avail another loan after taking the Home Loan because of the formalities involved. However, lenders know this and that’s where they don’t have rigid eligibility for a Top Up Loan. If you have availed a Home Loan or switched your Home Loan to another lender, you are eligible for a Top Up Loan.
- Quick and Hassle-free Application – If you have a strong CIBIL Score and repayment history, you won’t face any issues in getting the loan.
- Lower Interest Rate – The Top Up Loan interest rate is just 2-3% more than your Home Loan, making it affordable as compared to costs of other loan options.
- Wider Tenor – You get to repay the Top Up Loan on Home Loan within a tenor as long as your original Home Loan. It makes you relax and repay in smaller EMIs
- Tax Benefits – If you are availing a top up for buying or building new construction property, you will save tax on the principal amount and interest repayment. The Section 80C and Section 24 of the Income Tax Act have provisions for that. Even using the amount for home repair will help save taxes on interest repayment as per the Section 24.
The Bottom Line
If you have availed a Home Loan and have some other needs to cover for which if you need finance, you can rely on the Top Up Loan on Home Loan to help you out!