Nothing compares to the exhilarating feeling when purchasing your very own house. However, coming up with funds, especially when your savings are not enough, is difficult. Given this scenario, obtaining a loan is the most widely recognised and accepted method to take your house purchasing dreams forward. Nevertheless, sometimes, you need more financing, and this is where a Home Loan Top Up is a blessing. To understand what a Top-up Home Loan is all about and what are the benefits you gain when you opt for one, read on.
In simple terms, a Home Loan Top Up is a way of gaining additional funds on an already existing Home Loan. It allows you to obtain additional funding on the same loan. You do not have to go through the formalities and paperwork of applying for another loan. If you already have an existing loan that you are in the process of repaying but are still short on the required finances for a house purchase, a top-up loan is a good idea.
This kind of a loan is an exclusive offer. It means only those who have an existing Housing Loan in their name can avail this facility. You can ultilise this loan to renovate your home or extend it further.
Rather than getting another loan to finance your house renovation and modification, it is wiser to go for a top-up loan because you do not have to bother with approvals and documentation. The relationship with your bank is a cordial one since you are paying your existing EMIs (Equated Monthly Instalments) on time. You end up saving time, money and effort. Your already existing collateral and basic documentation are more than enough to access additional funds.
Since banks know that you are paying the EMIs for your current loan at regular intervals, the approval application for a top-up loan gets approved without much ado. In addition to this, banks offer attractive interest rates, and you also stand a chance to gain longer repayment tenure as well as lower EMIs.
Other than those mentioned above, there are many more reasons why a Home Loan Top Up is advantageous.
Borrowing a specific amount higher than the home loan amount is essential if you want to get a Home Top-up Loan. You have to submit proof of identity, income, and residence to obtain this loan.
Although taking a home loan to fund the purchasing of your residential area is the acceptable norm doing the rounds, it involves a lot of money. A Home Loan Balance Transfer plays a significant role in helping you reduce interest rates. It is a manner in which you can benefit from lowest interest rates prevailing in the market.
In simple terms, it means shifting your Home Loan to a bank or financial institute that provides lower interest rates and more favourable terms and conditions. If you have an outstanding Home Loan with one lender, you can easily do a home loan transfer, if you find another lender who charges a lower rate of interest.
To Find a Home Loan Balance Transfer, comparing rates of interest from various banks is vital. Also, it is best suited during the initial stages of loan tenure, when your EMIs go towards interest payment rather than the principal. Comparing rates and features help you pick the bank offering you the lowest rate of interest. Conducting your research the right way enables you to get top-up and lower interest rate on your home loan balance transfer.
If you are wondering “where can I get a Home Loan Balance Transfer” from, the key lies in finding a lender who offers you a lower interest rate than the one you are currently paying. Once you find such a lender, transferring your outstanding home loan and even getting an additional top-up loan is easy. This will make your home loan affordable and budget-friendly.
Check out MyMoneyMantra to find the best HLBT and top-up offers. Our team of financial experts will assist you to find the right loan option to meet your financial requirements.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.