When and why should one take Top up Home Loan? Know some of its special benefits – Top News Bulletin

Top up Home Loan : Own home is everyone's dream. Most people take home loan to buy a house. Home loan is the longest tenure loan. In such a situation, you have to pay a lot of interest in the long term. Therefore, before taking a home loan, one should check the offers of various banks and take the home loan only from the place where it seems most economical. Home loan customers many times need money to buy or construct a house or for other purposes. In such a situation, instead of taking an expensive personal loan, these customers can take a top up home loan. Here you get the benefit of low interest rate. This home loan is for those customers who already have a home loan. Let us know what are the benefits of top-up home loan and when it should be taken.

These are the special benefits of top-up home loan

• Many times there are some additional expenses apart from the home loan. Home loan top up can meet these expenses.
• Top up home loan is an affordable solution to manage your debt.
• Top-up home loan allows customers to take additional loan over and above their existing loan amount.
• Top-up home loans are quite beneficial for customers if you choose a shorter tenure for repayment.
• On top up loan, the customer gets a better deal from his existing lender. This reduces your overall cost of borrowing.
• The tenure of top-up home loan varies from bank to bank. For example, State Bank of India offers top-up home loans for a tenure of up to 30 years.
• The interest rates on top up home loans are usually slightly higher than regular home loan rates. These rates also depend on the profile of the customer.
• The difference between home loan and top-up home loan rates is usually between 1 to 2 per cent.
• If the customer repays the home loan for 12 months without missing any EMI, he becomes eligible to avail home loan top-up.
• The amount sanctioned by the bank will also depend on the monthly installments repaid in the regular home loan. With this, you will not have to apply separately for a personal loan.