Life is full of financial challenges and there are different kinds of needs that an individual faces at different points in their lives. How does an individual deal with such a financial crisis? Well, lenders provide a loan amount to individuals at affordable interest rates. One of the popular loan types is the Home Loan that individuals opt for to purchase the desired house. But what if you are in need of more money after taking a home loan, what should you do? Well, Home Loan Top Up in India could be the best option for you.
Let’s understand this in simple terms. Let’s say an individual has opted for a 20-year Home Loan of INR 40 lakh. But after 5 years, he wants to conduct a renovation of his home. So should he go for a Home Renovation Loan? Or should he go for a high-interest personal loan? Well, at such times, the most suitable option will be Home Loan Top up in India. You must be thinking what exactly is Top-up? Well, it’s just like the additional recharge on your mobile when you have exhausted all the balance before the date.
So, in this article, we will cover everything about the Home Loan Top-up so that you can understand it better and make the right decision.
Highlights of Home Loan Top Up in India
We are showing some of the important highlights of Home Loan Top up in India that you must see. Please have a look below.
Before knowing about the prominent features of Home Loan Top up, it is important to know the reason that makes this facility a perfect option for individuals. The first reason is the lowest interest rates compared to other loans and especially personal loans. However, top-up loan interest rates vary from one lender to another. And you don’t need to worry if you are a fresh customer. Both existing and new customers can easily opt for a Top-up Home Loan in India. So, we will be now coming to the details about it.
First, let’s talk about the Loan Amount. Well, while deciding the Home Loan Top Up in India, lenders first check the overall profile and repayment capacity of an individual. So, it cannot be a fixed amount set by a lender. The final amount will vary for one individual to another. HDFC Bank offers a top-up loan amount upto INR 50 lakh.
Same as Loan Amount, Interest rates are decided by the lender after seeing the repayment behavior. But as we said that they are quite lower than personal loans and other types of loans. So, you can easily repay the loan without putting extra pressure in your pocket. Also, interest rates vary from one lender to another.
You must be thinking about tenure. Well, a few lenders provide the Home Loan Top-up in India that customers need to repay within the remaining tenure of home loan. However, some lenders also provide it over the home loan tenure. So, choose accordingly.
A lender will always check the eligibility criteria before giving a Home Loan Top-up in India. If an individual has a high credit score which is considered to be 700 or above, he or she has higher chances to be eligible for this home as compared to an individual who has a poor credit score.
Other than this, a lender will also check the repayment behavior and past record to see whether you are eligible for it or not.
Customers can also transfer this existing home loan balance to some other lender with the Balance Transfer Facility and opt for the Home Loan top-up in India from that lender at lower interest rates.
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