Why a Top-Up Loan is a good choice

Do you need a lot of money urgently but already have an existing home loan?

This was a huge problem faced by Mr. Kumar who had taken a home loan few years back. He has been repaying all his EMI’s on time but due to a medical emergency, he needs a huge amount urgently. Getting a huge amount is not possible as he is already repaying his home loan. So what can he do to get the amount quickly?

The best suggestion in this scenario is a top up loan. In general, a top-up loan is given on the basis of your property and your existing loan. The interest rate will be higher for these cases and the tenure will be shorter than the home loan.

If the interest rate is high and tenure is low, then why this is a good choice?

There are 2 main reasons why a top-up loan is a good choice; These 2 reasons can help you make the decision on taking a top up loan or some other loan.

1.      Minimum steps in process: Since you already have an existing loan, the process of getting a top up loan is very less. You can get the loan amount quickly. The reason here is that the bank already has all your details and had deemed you eligible to get a home loan. Hence for top-up they will just check the documents which they already have and calculate how much loan you can get.

2.      Quick approval – Usually the loan process begins with you filling in a form, getting it approved by the bank, providing all the documentation, getting the eligibility certified by the bank and finally the loan gets disbursed. But in this case, you can get the loan amount quickly as the bank already has your information.

Hence in times of emergency or a need, getting a top up loan on your existing home loan is a good choice. This not only gives you a loan quickly but also saves you from stress and tension by quickly getting your loan amount disbursed. You can clear your debt obligations and medical emergencies quickly with a top up loan. Hence instead of opting for a new loan where the bank might charge you a higher rate of interest, a top up home loan can help you with the same amount at a quicker pace.

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Created on Sep 7th 2018 08:27. Viewed 401 times.

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