What is a Top-Up Loan: Everyone dreams of living in their own home. In such a situation, a home loan proves to be very helpful in realizing this dream. Even after building a house, there are many expenses for which we need money. For example, many expenses like furniture, interior, etc also require a good amount of money.
Top-up proves to be quite good to meet all these expenses. Many people do not know about top-up services. Let us know in this article how beneficial top-up proves to be for you.
What is a top-up loan?
Top-Up Loan is a type of loan. In this, you are given an additional amount. You can take this amount on the first loan. Banks and financial institutions provide top-up facilities to the customers. Let us tell you that a top-up loan is a type of personal loan. It is easily available at low-interest rates. However, the tenure of the top-up loan depends on the tenure of your home loan.
Benefits of top-up loan
In this, you do not need guarantee and security.
A top-up loan is a type of personal loan.
You can use the amount received from this loan for many works like furniture, renovation, repair, and construction.
If you use the top-up loan for construction and renovation, you can also avail tax benefits.
How to apply
You can apply for it by going to the bank from where you have taken the home loan. If you get the top-up loan on a home loan, then you have to pay the installment of the top-up loan along with the EMI of the home loan.
What are the terms and conditions?
You get a home loan only on the installment record of the old loan. If you are paying the installments on time then you can easily get a top-up loan. Different banks have different rules for top-up home loans. It is believed that a top-up loan is available up to 70 percent of the total home loan amount and the market value of the property.
PC Social media
