Many home loan borrowers undergo financial obligations while servicing their home loans. But with the easy availability of top-up loans, they can easily address their financial requirements without any worries. These loans are available at a nominal interest rate to ensure the loan amount becomes cost-effective for borrowers to pay. To get a correct estimation of EMI, borrowers can use a top up loan calculator.
Benefits of Availing Top Up Home Loans
A top up home loan is the most convenient source of finances for those who require monetary assistance. Here are some benefits one can avail of a top up loan:
- While opting for a balance transfer if you get a top up loan, the loan disbursement and the documentation process becomes minimal.
- The funds one gets from this loan can be utilised for clearing existing unsecured debts. These debts might have higher interest rates, so customers can easily clear their debt with the help of this top up loan and save some money.
- One does not require disclosing his/her purpose while applying for top up loan. So, borrowers can even use this fund for their personal expenses as well like funding any vacation or a home renovation.
- If the loan amount is invested for home improvement, then a borrower can claim a tax deduction on the interest paid under Section 24 of the Income Tax Act.
To know more about home top up loans, continue reading.
Documents required for top up loans
Here are some basic documents required to apply for a top up loan successfully:
- Any one of these KYC documents: Driving license, Passport, Voter ID card, or Aadhaar card.
- Salary slips for the last two months
- Employee ID card
- Applicant’s bank account statements for the last three months
How to apply for a home loan top up?
Borrowers can easily apply for a home loan top up without any hassles if they have the required data and credentials with them. The process of home loan top up involves the following steps:
- Log on to the lender’s website and click on “Apply Online”
- Enter the basic details and verify the identity through OTP sent to the mobile
- Enter the ideal tenor and loan amount
- Now, input the borrower’s personal, financial, employment, and property-related information
- Submit the application.
After submitting the application, an authorised representative from the lender’s end will come in contact with the applicant within 24 hours. Besides, applicants opting for home loan balance transfer must use a home loan balance transfer calculator, to know how much they are saving overall.
Top Up Loan Terms and Processing Time
Usually, the term of the loan depends on multiple factors, namely the maturity of the loan after its tenor ends, the age of the borrower, the age of the property, etc.
Borrowers can use a top up home loan calculator to compute their monthly payables. Its repayment time also depends upon the compensation scheme one chooses.
Some financial institutions even provide their customers with pre-approved offers on financial products, such as a home loan, loan against property, etc., to simplify their loan process. Borrowers can check their pre-approved offers online by entering their names and contact details.
Thus, before opting for a top up loan and calculating its amount using top up loan calculator, one must go through the points discussed here to get a complete idea to avoid rejection.