Know In Detail What Is A Top-up Loan
A top-up loan is an extra additional credit that is offered over and above a home loan, helping individuals address varied financial requirements like funding child’s education, medical urgencies, etc. Borrowers must have serviced an existing loan to be eligible for availing of a top-up loan.
However, before proceeding with the top-up loan application, borrowers must know the particularities associated with the credit facility.
Features of a top-up loan
Here are the notable features of a top-up loan
- Considerable loan amount
Borrowers can avail of a sizeable loan amount with the top-up loan facility, helping them easily manage any big-ticket expenses.
- Extended repayment tenor
Borrowers can repay the top-up loan amount over an extended tenor same as the loan tenor of a home loan in India, helping them plan their finances and repay the loan on time.
- Competitive interest rate
Another notable feature of a top-up loan is it extends high-value loan amounts at a competitive interest rate, making the EMI pay-out affordable. Moreover, it enables borrowers to save on loan expenditure.
- No-end use restrictions
A top-up loan comes with restriction-free utility. Borrowers can use the loan amount to meet any monetary requirements.
How to apply for a top-up loan?
Borrowers can follow the below-mentioned steps to apply for a top-up loan on the existing home loan.
Step 1: Borrowers need to visit the official website of their lender and then click on ‘Apply Now.
Step 2: On the redirected page, enter basic details and authenticate identity with the OTP.
Step 3: Mention the loan amount and loan tenor.
Step 4: Provide further personal, employment and property-related details. Submit the application.
To sum up, the top up loan is an effective financing option that helps borrowers sail through monetary exigencies. It allows borrowers to enjoy lower interest rates, tax benefits, etc.
Read Also: Smart Things To Keep In Mind Before Availing Of A Home Loan In Noida
