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Benefits of Availing a Home Loan Top-Up When Having a Financial Shortfall While Building Your Dream House!
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Lenders are not very encouraging of you taking another loan if you are already servicing a home loan. Applying for another loan impacts your eligibility, and can also alter your loan terms like lower loan amount and higher interest rates. But what if you need urgent funds? You could need money for medical emergency, repairs at home, pay education fees, fund a family function, or even for any urgent trip. You can use your savings, but why exhaust your hard-earned money when you have a better alternative? A top-up home loan can help you finance your varied needs. Intrigued? Continue reading.
What is a top-up home loan?
A top-up loan is a facility of getting additional funds over and above your home loan. To get a top-up loan, you must be an existing home loan borrower. The tenure of the top-up home loan is the same as the remaining tenure of your housing loan. You can use the ready cash from the top-up loan for your varied needs as you wish.
Benefits of Availing Home Loan Top-up
As you already have a relationship with the lender and are aware of your home loan eligibility, you can get the loan approval easily and swiftly. They need not check your creditworthiness from scratch to process your application. Typically, lenders check the applicant’s repayment history while approving a top-up home loan application.
You can use the top-up loan amount for any purpose you need. It does not necessarily need to be spent on expenses related to your house. You can use it for any medical emergency, pay for education, house expenses, etc. The lenders would not ask you where you intend to spend the loan money.
Availing a top-up loan is much more affordable than applying for a loan against property or a personal loan. The interest rate of the top-up loan could be the same or slightly higher than a housing loan you are servicing. However, it is a much better option than opting for a personal loan or credit card with high interest rates for your needs.
The tenure of the top-up home loan is the residual tenure of your existing housing loan. This could be longer than personal loans, which are up to a maximum of 5 years. You can opt for a longer tenure for your top-up loan to keep your EMIs low. You can also use a top-up loan calculator for more details.
The lender already has all your details and documents. They have verified your income sources and know your repayment capability. This makes it easier for you to meet the top-up home loan eligibility and avail loan faster. Also, you need not arrange and furnish all the documents again to the lender.
With a top-up loan, you can meet your financial shortfall along with building your house. You can get additional funds in half the time and effort. So, what are you waiting for? Don’t let lack of funds dampen your spirits. Apply for a home loan top-up loan now.
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