Got a cheap loan - Economical than Personal Loan and tenure so long that you can easily keep paying EMI
Top-Up Loan: Personal loan is considered a better option to meet the need of money in emergency. You get personal loan easily in less time and you can spend this amount anywhere as per your wish. But being an unsecured loan, it is very expensive. Its interest rates are very high and most of the banks give a maximum of 5 years to repay this loan. In such a situation, you have to pay a good EMI. But if you have already taken a Home Loan, then this work will be done very cheaply. If you need money, you can get a top-up loan on the home loan. This top-up is much cheaper than a personal loan and you can also get a good tenure to repay it, which is not possible in a personal loan. Know about top-up loans-
A top-up loan is an additional loan amount, which is taken on the already-running home loan. Many banks and financial institutions provide top-up loan facilities to their customers. A top-up home loan is a type of personal loan, which you get at low interest rates. The tenure of your top-up loan also depends on the home loan. Since home loans are mostly for a long term, you also get a long period to repay the top-up loan. If the tenure is long, the EMI does not become very big, so you can easily repay the loan.
The first advantage of a top-up loan is that you do not need any kind of security and guarantee in it, the reason for this is that you already have a home loan running in the bank. A top-up loan is a kind of personal loan, so you can use the loan amount for home furniture, renovation, repair, construction or any other personal or business work. However, if you use it only for home construction and renovation, then you can also avail tax exemption on it.
Before giving a top-up loan, banks look at the record of your loan installment payment. If the record related to EMI payment is good, you can easily get a top-up loan. But if your record is bad, then you may not get this facility. Banks may have different rules regarding how much money you will get as a top-up home loan. It is generally believed that the top-up loan amount can be up to 70% of the total amount of the home loan and the market value of your property.
You can apply for a top-up loan by visiting the bank from which you have taken a home loan or through the bank's website. Since the top up is available on your home loan, after taking the loan, you have to pay the monthly installments of the top up loan along with the payment of the home loan.
