Details of Home Loan Top up

What is home Loan Top up?

It’s a personal loan given to existing home loan customers at the terms of home loan. (Lower interest rate and higher Loan tenure)

Your home loan bank offers top up facility to existing customers with good repayment track record.

 

Top-up on Home Loan can be utilized for any purposes as of personal loan. It is not restrictive like home improvements, interior, refurnish home loan add-ons.

What is covered under Home Loan Top ups ?

 

One can avail top-up for purposes like kid education, vacation, debt repayment, car and personal loan pay off, medical emergencies, vehicle purchase, home improvements, buying commercial property etc.

Home Loan top-up is flexible for applicant’s needs and different from home furnishing/interior loans.

 

Eligibility considerations for Top up Loan

 

Existing home loan customers of the bank are eligible for top-ups. One can be eligible for top up in 6-18 months of paying EMIs on time and maintaining good credit records with the bank.

 

Interested applicants need to approach their home loan bank and ask for more details.

 

The top amount on your home loan would be difference between the original loan amount and current outstanding.

 

If you took a house loan of 60 lacs and current outstanding is 12 lacs you can expect a top up of 48 lacs.

When to consider Top up Loan

 

When you already have home loan and need to borrow more for personal reasons.

When you ‘have to’ borrow from banks.

If you are already considering taking a personal loan than home loan top-ups make more sense.

Use it to pay off existing Car Loan EMIs or Personal loans.

Benefit of taking Home Loan Top up

 

Home Loan Top-ups offer lesser interest rates than Personal Loans or Mortgage Loans.

More Loan amount as home loan top-up(Minimum Loan Amount: Rs. 3 lacs, Maximum Loan Amount: Rs. 5 crores.

Top-up offer longer loan tenure than personal loans and car loans. The tenure of top-up loan can go up to *15-20 years.

Top-up EMIs will be lighter on pocket than other bank loans.

Speedy approvals & lesser documentation as banks have your documents from home loan application.

If you avail top up loan for modifying, renovating or acquiring add-on for existing home, then you can also claim tax benefits for the same.

[Source: https://loaneasy.in/home-loan-top-up/]