This is How you Can Get More Money after Taking a Home Loan!

A home loan is a great financial instrument that can help finance 75%-80% of your property purchaseBut what if you need more money after taking a loan? Home renovation and extension, higher education of kids, unforeseen medical emergencies, etcmay require a substantial amount of moneyIn such situations, you can consider availing a home loan top-up to take care of these financial responsibilities.

What Is a Top-up Loan and How Can You Avail it?

A top-up loan is a type of loan that can be availed over and above your housing loanTo get a top-up loan, you must fulfil the below-mentioned criteria.

  • You should have an existing housing loan with the lender
  • You should have a good repayment history of your housing loan for at least 1 year

In case of a top-up loan, the processing time is lessThis is because the lender would have already verified your documents and other necessary details while sanctioning the loanMoreover, if you have been a responsible borrower and share a good equation with your lender, your top-up loan application can be approved instantly without any inconvenience.

Some of the major benefits of availing a top-up loan are mentioned below:

Interest On Your Home Loan Could Be Tax-Deductible - ZM Partners

Benefits of Top-up Loan

  • The rate of interest charged on a top-up loan is lower than that of a personal loan or credit card.
  • Since your housing loan is already a secured loan, you won’t have to pledge any collateral to avail a home loan top-up.
  • The tenure of a top-up loan is more as compared to the tenure of personal loans, credit card loans, and gold loansYou can settle for a tenure that suits your repayment capacity.
  • The top-up loan amount may depend upon the net value of your property as well as your repayment capacity.
  • You can also avail tax benefits on your top-up home loan provided the loan amount is utilized for home-related expenses such as home construction, renovation, restoration, etc.

In case your existing lender doesn’t provide the facility of top-up loan, you can consider going ahead with home loan balance transfer and top upA home loan balance transfer would allow you to transfer your outstanding loan amount from your existing lender to a new oneBy opting for the balance transfer, you can reduce your home loan interest rate as well as get more favourable loan termsMoreover, you can apply for a top-up loan with your new lender.

If you need additional funds after availing a home loan in India, opting for a top-up loan would be a wise choiceThe amount availed through a top-up loan can help you take care of your personal as well as business requirementsAttractive interest rate, longer tenure, easy availability, and tax benefits are some of the major advantages of availing a top-up home loan in India.