Home Loan Top-Up: The expenses related to the house are not being met by the loan, you can easily jugaad with the top-up

Home Loan Top Up: Buying a house requires huge capital and for this most of the people take a loan from the bank. The special feature of a home loan is that you can take a loan from the bank up to 90 percent of the value of the property, ie the LTV (Loan to Value) ratio is very high. However, sometimes money is also needed in addition to this, such as for other expenses related to the house like renovation, repair and extension. In such a situation, home loan top-up is a great option, through which you can mobilize money for additional expenses from your home loan.

Pre-Approved Loan: What is a pre-approved loan? Know these important things before accepting such offers

Who can get top-up loan and its terms

• Home loan taken from any bank or financial institution.
• The repayment history of the last one year should be good.
• Home loan top-up can be availed only after a few months or years of repayment. After how much time you will get this option, it varies for all the lenders.
• Depending on the current value of the property, it will be decided how much money you will get in the top-up loan.
• The tenure of the top-up loan will be decided according to the tenure of the outstanding home loan.

Home Loan Transfer: To reduce the burden of EMI, you are considering home loan transfer, so first know its complete process

Benefits of Home Loan Top-Up

• Multipurpose Uses: Using a top-up loan is not only necessary for household expenses, but you can also use it to fund your children’s higher education, business needs and wedding expenses, etc.
• low interest rates: Top up home loan interest rate is lower as compared to personal loan.
• No security required: There is no need to pledge anything for a top-up home loan as some security is already pledged for the home loan.
• Top-up loan is easily available: Top-up home loans are easy to get as the bank/financial institution already has the information and documents you need for a home loan. If you have a good loan repayment history, then the top-loan is also processed immediately.
• Tax Benefits: Tax benefits are also available on top-up home loans. However, these benefits are available only when it is used for home related expenses like construction, repair, renovation, extension etc. Keep receipts and documents related to the work done on your residential properties to avail tax benefits.
• More Validity: Top-up loans are available for a longer tenure as compared to personal loans and gold loans, ie you get a longer time to repay it.