Many people need extra funds while buying or constructing a new home using a home loan. It is where a top-up loan can be the best bet to cover additional needs.
Since a top-up loan comes with no restrictions, you need to consider a few things before availing of it. Read on!
Maintain a good repayment history
If you have been paying your home loan EMIs and other bills on time, lenders can vouch for your timely repayments, even on a top-up loan. You can also negotiate for a lower home loan top-up interest rate. It is known to all that a sound repayment record can help in easing off home loan interest rates and more.
Find out the top-up loan interest rate charges
You are already repaying your housing loan, and you want to get another one in the form of a top-up loan. Managing two loans and their EMIs could be daunting in your pockets. Hence, it would be good to know about your top-up loan interest rate.
You should negotiate for a lower one if your CIBIL score is well within 750 or more. Even a slight difference in interest charges means saving big on EMI payments during the tenor.
Consider charges for availing of top-up loans
Whenever you apply for a loan, you incur some charges. And the top-up loan on your home loan is not an exception. Thus, before jumping on it, you ought to evaluate the overall costs of such expenses. This way, you can be better prepared to deal with it.
If you can take care of these elements, you may not find issues in approaching and managing your top-up loan on housing finances. You can begin after going through your lender’s terms and conditions for the home loan top-up finance.
%20(1).png)
No comments:
Post a Comment