Did you know that borrowing Home Loan Top-Up can be better decision to make than to borrow Personal Loan or Business Loan – Know how:
What is a Home Loan TOP-UP: Home loan top-up is a loan that can be borrowed over an existing home loan. Home loan top-up is offered to reliable customers who have sincerely made payments of the home loan they had borrowed. Bank would offer such reliable customers a top-up over the housing loan amount that has been paid thus far. Home Loan Top-up can be borrowed without any pre-condition therefore they are easy to be borrowed to meet any financial requirement be it a personal or even a business requirement. Let us know in detail why borrowing a Home Loan Top-up a better deal than borrowing a personal loan or business loan.
- Home Loan Top-Up are offered to existing customers: Since Home loan top-up are offered to existing customers therefore, there is no question of you being eligible or not to borrow a home loan top-up. You are eligible to borrow a home loan top-up if you are an existing home loan customer. However, you need to still meet the bank’s criteria to determine if you are eligible for home loan top-up on your existing home loan. You should have paid your home loan EMI for a minimum period of 2 to 3 years for you to apply for home loan top-up. Since you had already submitted your KYC documents and other necessary details or documents and the banks would have verified the same at the time of granting you the loan therefore, no further verification is required.
- Home Loans are offered at lower interest rates as compared to Personal Loan or Business Loans: if you compare various interest rates you would find that the home loan interest rates are lower than all the other loans as the home loans are offered at 8.35% to 12.50% per annum. On the other hand personal loans are offered at 10.85% upto 24% per annum. Business loans are offered at rate of interest starting from 14% upto 24% per annum. The comparison shows that given an option Home Loan Top- up is a better deal to grab than any personal loan or business loan.
- Home Loans can be paid over long loan tenure: We are all aware of the fact that home loans are offered for a really long tenure that can be extended upto 30 years. On the other hand personal loan and business loans are short termed loans that can be borrowed for loan tenure of 3 to 5 years max.
- Home Loan top-up can be availed at Low processing fee cost: Unlike processing fee of personal loan and business loan the processing fee required to borrow a home loan top-up is relatively lower. Processing fee to borrow personal loan or business loan is upto 3%, whereas the processing fee to borrow home loan to-up is 0.35% to 1%.
The article proves that given an option Home Loan Top-Up is a better deal to grab than borrowing any Personal or Business Loan.