HOME LOAN

Sometimes, you need another helping hand to fulfill your dreams. How wonderful would it be if someone understands your aspirations and is always there to help you? One such product that fulfills the criteria is a top-up loan. The top-up loan is a financial help provided by banks or housing finance companies so that you can easily fulfill your dreams with little more financial aid. 

Top-Up Loan Meaning:

Top-up loan is a facility provided by banks, housing finance companies and other financial institutions that allows you to borrow a certain amount of money over and above your home loan.

Features of Top-Up Loan:

Eligibility: The top-up loan is not available to everyone who has availed a home loan from a bank. Several factors are taken into consideration before granting the top-up loan. Banks check the repayment ability and past track records in relation to the repayment of the previous home loan. If the credit report is favorable, the banks grant the top-up loan by charging some processing fee. In some cases, banks waive the processing fee.

Tenure: The top-up loans are either given for the outstanding period of the existing home loan or for a period of 10 years. The tenure changes from bank to bank.

Interest Rates: The interest rates charged on top-up loan are slightly higher than what you pay for your home loans. This is very cheap compared to the interest rates on the personal loan.

Utilization: You can utilize a top-up loan for purposes of modification or construction of your house or to meet your personal expenses like funding for children’s education, etc. However, you cannot utilize the top-up loan amount for speculative purposes.