What is a Top-up Loan?

A Top Up Loan is a specialized loan that is offered by many leading financial institutions to the applicants, who need to cover some financial needs immediately. This facility is available along with active home loan account with the lender. If you have opt for the home loan balance transfer, then also you can avail the Top Up Loan facility. The biggest facility a Top Up Loan is it is a big-ticket loan, where you can get a loan up to Rs.50 lakhs, can use the money for any needs and the rate of interest of the loan is comparatively lower.

Must Read: Why People Prefer Online Personal Loan Than The Traditional Way?

If you have a home loan or you have transfer your home loan to another lender and that new lender has the facility of Top Up Loan, then you can surely get a loan. Lenders consider your Home Loan collateral as the security for the Top Up Loan. This will save the hassle of submitting anything extra. The interest rate on the top up home loan is only 1-2% more than your ongoing home loan, but the rate of interest is lesser compared to a personal loan, which is around 12% to 20%. You can also enjoy an extended loan tenor, so that, you can repay the loan in smaller EMIs and manage your finances better.

You should be aware of the certain facts, such as, if your home loan has only 7-8 years left then, you won’t be able to select a Top Up Loan tenor more than 7-8 years.

To know the more facts about it, read:
Top Up Loan - A Good Option than Gold or Personal Loan