A home loan top up is an additional loan you take on top of an existing home loan. In case you are currently repaying a home loan and require more financial help to cover other home-related expenses, you can approach your lender for further financing. If you meet the lender’s requirements, they will provide you this additional loan amount & you can cover your needs with ease.
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What can I use the home loan top-up for?
You could use the funds to cover home-related expenses such as purchase of furniture, home appliances, renovation, home-improvements, etc. However, it is not compulsory that you use the funds only for these causes – you could use the funds to cover personal expenses such as a holiday, the education cost of your children, or their marriage expenses. The bank usually does not monitor the end use of a home loan top up.
Home loan top-up interest rate:
The best part of home loan top up is the interest rate. Most lenders will provide you top-ups at very reasonable rates, usually just 1% or 1.5% more than that of a home loan. This much lower than a personal loan considering that home loan interest rates start at just 8.35%. Home loan interest rates ensure that getting additional finance is extremely affordable and cost-effective.
How to get home loan top-up:
There are two ways to get a home loan top up. The first is to approach your current home loan provider. They should provide you a top up if you’ve repaid a good portion of your existing home loan. Alternately, you could get a home loan top up from another lender. To get a top up from another lender, you will have to transfer your outstanding home loan balance from your current lender to the other lender. This process is called refinance and it could help you unlock lower interest rates for the remainder of your home loan repayment process.
Home loan top-up amount:
Most lenders offer sizeable loan amount when you opt for home loan top ups. Some lenders will offer as much as 40 or 50 lakhs as the top-up amount. Some lenders will offer more than this also, but it all depends on your eligibility which will judge as it is when you apply for any sort of loan. The eligibility evaluation will be a little more lenient as you have already qualified for a home loan which is one of the toughest loans to qualify for.
Processing fees of a home loan top-up:
The home loan top up rate is not the cost of such a finance solution. You will also have to pay a processing fee when applying for a top-up. The processing fee will vary from one lender to the next and could be nil if there are any special promotions or offers going on.
ApnaLoan Home Loan Top-up:
At ApnaLoan, we can give you access to the best home loan top ups available today. We have the best offers and home loan top up rates from 30+ lenders in India. Just register your interest and we will provide you with instant quotes from which you can choose from!