Life is uncertain, and the events that you face are often unforeseen. If there comes a situation in which you need more money, what will you do? You may already be having a home loan, and you may consider taking another loan for your unexpected expenses. Well, you don’t need to take another loan! You can now top up the existing home loan as it is more convenient than getting a new loan. Here is all you need to know about topping up your existing home loan.
When you take a home loan for the first time, there will be a certain eligibility limit for the amount offered. If you have already reached the full limit, there is no scope for you to take another loan immediately. But over a period of time, your income may have increased, and you would’ve paid back some amount of your loan. So your loan eligibility would have gone up owing to such positive factors. Under these circumstances, you will be eligible to top up your existing home loan.
As per most of the home loan policies, a top-up option on a home loan will be given only after 6-12 months of paying the earlier loan. But if you have a good repayment track record, you can avail a top-up on your existing home loan. The loan provider will further investigate the need for a top-up and the final decision of approving the same lies in their hands.
Here are some of the reasons for which you can opt for a top of the existing home loan.
A top-up loan is undoubtedly a better alternative as compared to a personal loan. Often, personal loans come at a rate of interest of about 18-24%. By comparing the features listed above with a personal loan, you will be able to understand that it is much simpler and much more beneficial for you to top up your existing loan than taking a personal loan. By maintaining a good loan repayment track record in a stipulated time period, you can avail the eligibility to top-up your existing home loan.
Availing a top-up loan is becoming more and more popular in today’s time. The many advantages that it comes with, and the ease of procuring it make it a preferred option as compared to other types of loans. Understanding the different home loan policies and finer details is important to make the most of any loan that you take. Make sure that you maintain a good track record, and you can be at ease knowing that if the need arises, you can always rely on getting a top-up on your existing loan.
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