Home Loan top up is a wise decision. This is because it lets you additional funds with lower rate of interest. Not many borrowers are aware of the benefits of availing a Top Up Loan and thus I summarize them below for your quick reference.
Benefits of getting a Top Up on Home Loan.
- As the lender will not go through the loan process you may avail instant approval and quick loan disbursement.
- The loan can be taken at more or less similar rate of interest on the existing loan. Therefore, you do not have to worry about any major changes in your EMIs.
- For the Top Up Loan process the lender does not require additional paperwork. Only the bank statements of existing loan are enough to initiate and finalize the loan process.
- Top up is available for a longer duration which is either 20-30 years or until your retirement. This period is irrespective on the tenure of your existing loan.
- The top up amount can be used for home renovation, home extension, interior decoration or for any reason as this is an all-purpose loan.
- This is a collateral free loan as it does not require you to pledge any security/ guarantee to obtain it.
To be sure of the top up on the Home Loan use the Top Up Loan calculator available at the lender’s website. It will ask values for –
- Total loan amount sanctioned
- Existing tenure of your Home Loan
- Existing rate of interest on your Home Loan
- Rate of interest of the lender
- To provide the Top Up Loan amount you stand eligible for