With the process of availing loans becoming easier, today an individual can address their financial needs without any hassle. Leading financial institutions provide borrower-friendly loan options to help ease the repayment procedure. Home loan balance transfers, top-up loans, etc. are an example of such features.
Top-up loans are advances offered over and above an existing home loan amount to borrowers. They provide home buyers with the vital financial assistance to comprehensively complete their new home purchase and meet all associated monetary requirements. These loans come with no end-use restrictions like the unsecured personal loans.
Generally, personal loans come with a much higher rate of interest and put a lot of strain on the finances over time. Opting for top-up loans can be a good idea when you opt for a home loan balance transfer.
Following is all you need to know about top up loans on home loans.
What is a Top-up Loan?
It is a type of external financing option which can be availed as an addition to an already existing loan. In case an individual is currently repaying the loan amount, he/she can apply for a top-up loan by going through the terms and conditions respective to the financial institution.
What are the Benefits of a Top-up Loan?
Following are some of the primary reasons why a top up loan is considered beneficial.
- All-purpose Loans
One of the best things about these loans is that it can be utilised for any purpose. You can use it to purchase new furnishings or meet pending registration charges for the newly bought property or even fund a ceremony on the occasion.
- Easy Approval
These loans are offered over and above an existing home loan. As the lender already benefits from a collateral in the form of the mortgage against the existing home loan, they are more easily inclined to offer a top-up. However, property valuation may dictate terms. Higher the valuation, easier it is for the borrower to avail the top-up.
- Extended tenors
Top up loans can be available for longer tenors than most other loans. The loan tenor will be varying from one institution to another. There are institutions which offer top up loans for a mandate which is longer than the existing loan.
- Benefits on Taxes
An individual can also avail tax benefits on such loans. However, they can only do so if the funds are utilised for home renovation, extension or refurbishment.
It is a financing option which requires some easy-to-meet eligibility criteria which make availing them easy for any individual. Following are the requirements.
- You need to be a resident of India.
- The individual needs to be between 23 and 62 years of age.
- The individual needs to be employed having a work experience of around 3 years.
- The loan amount ranges between Rs. 10 Lakh and Rs. 3.5 Crore.
Documents required for home loan and top-up loan are the same as the latter is availed over the former. You do not need to resubmit your documents.
Numerous financial institutions offer such loans at attractive rates of interest to make repayment easier for the borrower. Bajaj Finserv brings with them Home Loans as well as Top Up Loans with affordable rates of interest and flexible repayment tenors.
A lot of people still do not apply for a top up loan in spite of having additional expenses to take care of. However, in such situations opting for the loan may be the smartest decision. Refer to top lenders to avail a top-up across easy loan EMI and meet your current financial requirements to repay later easily.