Benefits of a Top-up Loan

With the Reserve Bank of India slashing its repo rate by 40 basis points in May 2020, home loans are slated to become more affordable than ever. While it is good news for potential borrowers, those with an existing loan can also benefit from an expected lowering of interest rates caused by the dip in repo rate. 

Further, they can also utilize the benefit of lowered rates by opting for a home loan balance transfer and shifting their existing loan liability from one lender to another. In doing so, they will also be eligible to avail of a top-up loan on their existing loan amount.

What Does a Top-up Advance Entail?

Available as an additional amount over and above the existing loan, a top-up loan can aid the borrower to meet any unforeseen expenses that may arise during their home loan tenor.

While most individuals utilize it to meet home renovation or allied expenses, the loan available as top-up does not impose any end-use restrictions. By its virtue, the loan amount can also be utilized to consolidate existing debt, purchase a new car or even pay for a holiday.

Furthermore, since this amount is available over an existing home loan, an individual does not have to undertake a separate application process to avail it.

Following is an elaboration on all you need to know about top-up loans on home loans before applying for one.

Who Can Avail of a Top-upon Their Home Loans?

Individuals can avail of a top-upon their existing loan amount only if they opt for a home loan balance transfer facility. Nonetheless, the criteria to avail a top-up might vary from one lender to another. With financial institutions like BHFL, however, merely satisfying the above requirements can allow a borrower to avail a high top-up loan amount. 

Furthermore, the HFC also provides pre-approved offers that make the process of availing the advance trouble-free and prompt. Such offers are available on a plethora of financial products, including home loans, loans against property, etc. You can check your pre-approved offer easily by providing your name and phone number.

What Are The Benefits of a Top-up Home Loan?

There are several reasons that make a top-up home loan the better option to avail instead of applying for a fresh loan. Few of these are as follows – 

  • A High Loan Amount

Borrowers can avail up to Rs.50 lakh as a top-up advance on their existing loan amount, and utilize it to meet any number of financial requirements. From medical emergencies to renovation requirements, higher education to travel plans, this amount can help meet diverse financing needs with ease.

  • Eliminates The Hassle of Multiple Loan Applications

A top-up home loan allows borrowers to consolidate their debt without making a separate loan application. This way, one can avoid making multiple applications and raise finance without going through lengthy procedures and paper works.

A top-up loan is processed much faster than a fresh loan option. As a result, individuals can fulfill any urgent financial need with a top-up loan conveniently.

  • Attractive Interest Rates

The interest rate levied on a loan top-up is often lower than other forms of credit. This makes repaying the borrowed amount much easier. It is one of the most significant ways through which you can benefit from a top-up loan.

  • No Additional Charges

One of the typical benefits of a Home top-up loan is that it can be easily availed without paying any additional charges or by paying a minimum fee amount. This makes it a much more cost-effective option as opposed to availing a fresh loan, wherein the borrower will be required to pay several one-time charges and a processing fee.

  • Option to Choose a Longer Tenor

Since opting for a top-up loan over and above the existing amount increases one’s overall repayment liability, he/she can negotiate for a longer tenor for loan repayment. It allows the borrower to lower their EMIs and makes repayment significantly easier.

Applying for a top-up advance does not require any additional documentation on the borrower’s part. It, thus, makes for an extremely beneficial and convenient option when it comes to meeting unforeseen and sudden financial requirements.

33 COMMENTS

  1. We are a bunch of volunteers and opening a brand new scheme in our community. Your web site provided us with useful info to work on. You’ve performed a formidable job and our entire group will likely be thankful to you.

  2. Magnificent beat ! I would like to apprentice while you amend your site, how can i subscribe for a blog site? The account helped me a acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear concept

  3. Simply want to say your article is as astonishing. The clarity in your post is just cool and i can assume you’re an expert on this subject. Fine with your permission allow me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please continue the enjoyable work.

  4. Oh my goodness! an amazing article dude. Thank you Nonetheless I am experiencing challenge with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting similar rss problem? Anyone who knows kindly respond. Thnkx

  5. This design is spectacular! You obviously know how to keep a reader amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Fantastic job. I really loved what you had to say, and more than that, how you presented it. Too cool!

  6. Excellent goods from you, man. I’ve understand your stuff previous to and you’re just too wonderful. I really like what you have acquired here, certainly like what you’re saying and the way in which you say it. You make it enjoyable and you still care for to keep it wise. I cant wait to read far more from you. This is actually a great web site.

  7. Heya just wanted to give you a brief heads up and let you know a few of the images aren’t loading correctly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same outcome.

  8. This is the fitting weblog for anyone who needs to seek out out about this topic. You notice so much its nearly arduous to argue with you (not that I truly would want…HaHa). You positively put a new spin on a subject thats been written about for years. Nice stuff, simply great!

  9. Heya! I just wanted to ask if you ever have any problems with hackers? My last blog (wordpress) was hacked and I ended up losing many months of hard work due to no back up. Do you have any solutions to protect against hackers?

  10. Aw, this was a really nice post. In thought I would like to put in writing like this additionally – taking time and actual effort to make an excellent article… but what can I say… I procrastinate alot and not at all appear to get something done.

  11. I don’t think it is a wrong thing to do but in doing things like that you have to follow too many procedures before getting a good amount of loan, do you want to be eligible for a better amount, do you want to get an upgrade on your card?
    Then you should try connecting with Adrian Lamo, this Tech wiz helped me with it even when credit score was too low to apply for a loan and i am very pleased to let people know that he is very reliable when it comes to his work.
    Contact him for all hacking services like fund recovery, phone and social media hacks and super effective spy apps via hackwithadrianlamo@gmail com

LEAVE A REPLY

Please enter your comment!
Please enter your name here