Main Reasons To Choose a Top Up Loan
Purchasing a house through Home Loans can be a smart move but if unplanned can become the worst nightmare for the borrower. As Home Loans have a huge amount of money involved, you might need sufficient time to repay them.
Among all these regular EMI payments and financial stress of keeping the next instalment ready, the worst case situation could be a financial emergency.
We all are familiar with the fact that financial emergencies are unpredictable in life, but if you have an existing loan, it can make you compromise on many things or even worsen your financial condition.
All these problems can be solved with the help of financial aid which can be availed from your lender; the solution to the urgent need of funds with an existing loan can be a Home Top up loan.
What is Top Up Loan?
Top up loans are small loans that you can avail on your existing Home Loan. In simple words, when you are in dire need of money with the existing Home Loan, you can avail a Top Up Loan on your Home Loan from the same lender. A Top up loan can be helpful in many ways, here are the benefits of a top up loan.
- Flexibility for the allocation of funds: Similar to a personal loan, you have the choice for the allocation of funds availed from a top up loan; which means once you have availed a top up loan, you can use it for any purpose you feel necessary.
- Easy approval: Since your lender has trusted you once with a Home Loan and if you maintain the trust with regular payments, the lender will not hesitate to approve your Top up loan application too. With easy procedures, Top up loans would not take much time to get approved.
- Low-interest rates and charges: When it comes to loans, interest rates play an important role while the other charges can be a matter of concern too. Unlike other lending products Top Up loans have lower interest rates and charges like processing fees, pre-payment charges and closure charges are comparatively lower than other loans.
Due to the flexibility for the allocation of funds, you can use a Top up loan for the following purposes:
- Home construction: The construction of a house can cost you a lot and especially if you have purchased a residential plot with the help of a Home Loan then managing funds can be a tedious task. In such a situation, you can opt for a home top up loan to fund the expenditure of building a house.
- Home improvement loan: Few years after buying a house, you might feel the need for repairs or making some changes in the structure or the interior of the house. To make these changes, you might need funds that can amount from thousands to lakhs. To cover this financial gap, you can take the help of a Top up loan.
- Education, Wedding or Medical emergencies: Things like Education and wedding are important and unavoidable expenses, on the other hand, the expenses for a medical emergency cannot be ignored. These expenses can amount in lakhs and for a person with a Home Loan, arranging funds for the same might not be an easy task. A top up loan can be the ideal solution to manage the funds for such expenses.
Home Loans can make you helpless during a financial crisis and applying for any other loan can be time-consuming. Hence, Top up loan serves best for your financial needs during an ongoing Home Loan.
Category: Loans
