The Benefits of Taking a Top Up Loan

The Benefits of Taking a Top Up Loan

Life may present you with certain situations when you may need one more helping hand to help you achieve your dreams and aspirations. It is indeed very helpful if your goals are understood by someone who is ready and willing to help you.
A Top Up Loan is one such product which helps you pursue and fulfill your plans. It is provided by the banks and housing finance companies and is a form of financial help to ease your situation.

Individuals nowadays have been taking Top Up Loans owing to the numerous benefits these loans offer. This article explores the multiple advantages of taking a Top Up Loan.

What is a Top Up Loan?

A Top Up Loan is provided by a bank or a housing finance company as a facility or a service in addition to the Home Loan. This loan makes it possible for you to borrow an additional amount of money on top of the Home Loan that you took from the finance company or the bank.

However, this loan is not given to anyone and everyone who borrows a Home Loan. There are certain criteria which the housing finance companies and the banks consider while providing Top Up Loans to their customers.

The housing finance company or the bank will examine your ability to fully repay your Top Up Loan on a Home Loan. Your past records pertaining to your repayment ability with regards to past Home Loans that you may have taken will also be checked.

If the company or the bank finds that your track record is credible, it will provide you a Top-up Loan. You may be required to pay a specific processing fee if the bank or the company deems necessary.

Benefits of Top Up Loans

Home Top Up Loans are a popular choice among customers these days, owing to a lot of advantages. Here are certain benefits of Top Up Loans, because of which you should consider borrowing one.
  • It is much easier for an existing customer of a housing finance company or a bank to get a Top Up Loan as compared to a personal loan.
  • These loans come with a long tenure of around ten to twenty years, thus seeking to reduce your goals. And provide you ease while you fulfill your goals.
  • Top Up Loan interest rates are pretty reasonable as compared to personal loans. The interest rates usually range between 11.25 percent and 13 percent per annum.
  • The borrower of this loan gets much more time to pay off the loan.
  • The EMIs of these loans are much smaller as a result of the long tenure which these loans allow. You can get a fair estimate using the Top Up Loan EMI calculator.
  • The borrower may also receive tax benefits if the loan amount is used to acquire or renovate space for their existing home, such as a parking space.
  • Moreover, Top Up Loans are way cheaper than the personal loans available in the market today.
Key Features of a Top Up Loan

While taking a Top Up Loan, you need to be aware of the key features of such loans. The banks and housing finance companies offer Top Up Loans solely to their existing borrowers for Home Loans. The tenure of the loan may vary between ten and twenty years, depending on the term of the Home Loan. The amount of the loan depends on the outstanding Home Loan balance.

The bank or the company approves the Top Up Loan by taking into consideration the property’s market value and the outstanding amount of the Home Loan which you have taken from it. The loan requests are approved based on the eligibility criteria which the bank or the finance company needs you to meet.

You can take a Top Up Loan for several purposes, such as purchasing furniture, your child’s education, or even a family holiday.

While applying for a Top Up Loan, you should make a comparison between the different kinds of Top Up Loans offered by different companies, and choose the one that suits your needs and circumstances the best.

Carefully go through the eligibility criteria and the application process. You can calculate an estimate, in order to get a better idea, using the loan calculator, which you can avail online. Examine the policies and opt for the best suited Top Up Loan.



The Benefits of Taking a Top Up Loan The Benefits of Taking a Top Up Loan Reviewed by Ravish kumar on March 10, 2018 Rating: 5

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