Life is uncertain, and the events you face are often unexpected. Here is what you should do when it comes to loans, say yes to top up loan, If you are planning to buy flat then have a look on 2 bhk flats in jagatpura jaipur.
If there are situations where you need more money, what will you do? You may already have a home loan, and you can consider taking other loans for your unexpected expenses. Well, you don’t need a loan anymore! You can now add existing home loans because it is more comfortable than getting a new loan. This is all you need to know about topping up your existing home loans.
How Does Top Up Loan Work?
When you take a home loan for the first time, there will be certain eligibility limits for the amount offered. If you have reached the full limit, there is no room for you to take another loan immediately. But for a certain period of time, your income may increase, and you will pay back a number of your loans. So the feasibility of your loan will increase because of these positive factors. In this situation, you will be eligible to add existing home loans.
As per the majority of home loan policies, the top-up option on a home loan will be given only after 6-12 months paying the previous loan. But if you have a good payment trace record, you can use the top-up on existing home loans. Loan providers will then investigate the need for top-ups and final decisions to approve the same lie in their hands. If you want to know more about GST liability is exempted read more with us.
Here are some reasons you can choose for the top of the existing home loan.
- Can be used as a personal loan
- To buy another property
- To buy a plot of other land
- To renovate your home
- To buy consumer products
- For your educational / wedding ward
- For business needs
- To bear the cost of treatment
Top Up- What Is the Advantages of Taking a Top up Loan?
When you choose to add your existing loan, you don’t need to save your assets as a guarantee. However, someone must remember that to get the paper back to your hand, you need to pay off the original loan and a top-up loan.
You can enjoy certain tax benefits on top-up loans if the top-up loan amount is used to buy a house or if you use it to renovate your home. Apart from this, using top-ups for other purposes will not give you tax benefits.
Based on your original loan amount and your feasibility, you can take a top-up loan until you reach the upper limit as stipulated by the bank. This can range from 15-40 lakh. For example, if you have taken RS loans. 30 lakh, and your upper limit may be Rs. 60 lakh, you will be eligible to overcome it and take 30 lakh loans again on the same asset.
Most banks charge certain processing fees to approve top-up loans. These costs are often the same as home loan processing costs. For example, banks can charge 0.75% of the number or Rs.2000 which are maximum as the processing fee for top-up loans.
The interest rate for top-up loans is only 1.5% to 2% higher than the home loan interest rate. This may add up to 11.5% to 14%, which is still less than personal loans.
Personal Loan vs. Top up Loans
Top-up loans are undoubtedly alternatives that are better than personal loans. Often, personal loans come at the interest rate of around 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 useful for you to add your existing loan than to take a personal loan. By maintaining a record of a good loan payment in a period of time specified, you can take advantage of the feasibility to refill existing home loans.
Providing top-up loans is becoming increasingly popular in today’s time. Many of the advantages conveyed and the ease of procurement makes it the preferred choice compared to other types of loans. Understanding different home loan policies and better details are important to use the loan you take. Make sure you maintain a good track record, and you can easily find out that if the need arises, you can always rely on top-ups on existing loans. Now you know why you should Say ‘Yes’ To Top up Loan, if you planning you invest in or buy you own home please check these 2 bhk flats in jaipur.