Top-Up Facility on Home Loans to Help Manage Multiple Loans - Loan Trivia

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Monday, 8 October 2018

Top-Up Facility on Home Loans to Help Manage Multiple Loans

A number of financial institutions offer the option of topping up the value of an already existing loan. What this means is that the applicant is saved from the hassle of applying and maintaining multiple loans. This is mostly availed when switching from one lender to the other or you want to increase your loan amount.

The benefit here is that there is no need to go through the paperwork all over again. The applicant just has to submit a request for Top-up Loan and the documents are already with the lender and there is no need to submit a fresh set of documents.  This makes the entire process very fast.

The value of the top-loans can go up to 50 lakh and can be availed at very competitive rates which should be enough for covering any kind of expense. Additionally, there is no need to disclose the reason behind availing a top-loan loan to the lender or anyone else. It is availed for personal reasons and as such can be used for any purpose be it a home renovation, vacation, or any other kind of emergency. It can also be used for settling any previous loans or debts which have a high rate of interest and which should be cleared at the earliest.

However, if the top-up loan is used for home renovation, then the applicant becomes eligible for tax deductions on the interest which is paid under Section 24 of the Income Tax Act.

In short, top up loans on Home Loans are a blessing in disguise. If you are interested in applying for one, you should visit the website of any such financial institution or speak to their representatives.



Additional Read:
Home Loan Top up – The Best Option for Your Basic Needs

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