What is a Top-Up Loan? Benefits, Eligibility, and Application Process

A top up loan is beneficial for individual borrowers looking for an extra amount in addition to an existing home loan. It serves as an ideal option for overcoming unpredicted financial constraints. Moreover, a home top-up loan is easy to apply for because the home loan eligibility is already checked upon and there will be no need for documentation submission further. Interested individuals can read on to learn more about the top up loan, its features, benefits, and so on.

What is a top-up loan?

A home top-up loan is an additional fund above an existing loan. Borrowers already having a home loan opt for a top-up loan instead of taking another loan. Borrowers can utilise this loan amount for various purposes such as furnishing, renovating, and building a house.

Competitive rates of interest are an additional feature of top-up loan. The interest rate offered on top-up loans is similar to home loans. However, to be eligible for a home top up loan, a borrower needs to hold a strong history of EMI payments on time.

What are the features and benefits of top up loan?

Here are the top up loan benefits and features you must know:

• High loan amount: The loan amount is sanctioned considering the eligibility of an applicant and verification after submission of documents. For an ongoing home loan, one can get a loan amount as high as Rs.1 crore.
• Competitive rates of interest: Eligible applicants can opt for home loans at competitive top-up interest rates starting from 9.80% p.a.
• Eligibility Criteria: The eligibility criteria for a top-up loan are similar to a home loan. Applicants can thus easily avail this credit type.
• Quick disbursal: Existing home loan borrowers can avail a top up loan. Thus, it is easy to get top-up loan approval along with their quick disbursal.
• Flexibility: Because of the end-use flexibility features, borrowers can meet all household expenses including home renovation and construction as well using the top up loan amount.
• Ease of application: Applying for a top up loan is easy to meet. Just one needs to fill up the loan application form and submit the relevant documents on time.

How to apply for a top up loan?

Applying for a top-up loan is easy and hassle-free. With the use of home loan calculator, one can easily find out the loan amount to borrow. Here is a detailed step-by-step guide on how to apply for a top-up loan:

Step 1: Visit the official website and click on the button ‘Apply Online’.

Step 2: Enter all basic information such as name, contact details, email address, and so on.

Step 3: Enter the OTP sent to the registered mobile number.

Step 4: Enter the loan amount with the years of repayment.

Step 5: Provide personal, financial, employment, and property-related information.

Step 6: Fill in the application form with all relevant documents.

Step 7: Click on the ‘Submit’ button.

Following the above-mentioned steps will let borrowers complete the top up loan application process conveniently.

Many financial institutions provide pre-approved offers to existing customers. Opt for products such as home loan and loan against property to experience a faster credit approval process. Interested individuals can visit the respective official websites of lenders and check out the pre-approved offers. To experience a hassle-free and smooth process, one can enter their name, contact details, and email address.

To conclude, a top-up loan serves as the best option during any emergency. Individual borrowers when in need of immediate cash opt for a top-up loan as there are no end-use restrictions. There is involvement of minimal documentation and thus one must know how to use this loan type wisely. Because top-up loans are expensive, individuals opt for a top up loan to lower their financial burden.