Top up loan can be availed against home loan. Its amount depends on the EMI paid by the applicant so far.
top up loan
During the Corona period, many people are in need of money due to economic problems. In such a situation, people consider it easy to take a personal loan, but due to the high interest involved, the burden on the pocket can increase. In such a situation, top up loan is a better option. In this, you will get a loan at a lower rate of interest. Also, you will get enough time to repay it.
What is top up loan
You can also take a loan against a home loan to meet the additional cash requirement. If you have paid the last 12 monthly installments (EMIs) on time, you will easily get a top up loan. How much you will get top-up loan depends on the amount of EMI paid till now. You can give 10% of the home loan amount in the top-up. At the same time, after 24 EMIs, 20% of the amount can be given in the top-up loan.
Top Up Loan Highlights
Home loan can be top-up. This loan can also be taken for a period of 30 years. Banks usually give you a top-up loan based on the home loan repayment pattern. The calculation of interest rate depends on the credit history of the borrower. Installments of top up loans also have to be repaid like other loans. The process of taking a top-up on a home loan is similar to that of a home loan. For this you will need property documents, permanent address, identity card and income proof.
Benefits of this scheme
1. The interest rate of a top-up loan is lower than that of a personal loan, so you will not be extra burdened.
2. There is no restriction on the use of the money received from this loan. You can use it for any work including business, taking property, marriage of children or their education.
3. There is no need to pledge any additional thing for top up loan.
4. The process of top up loan is very fast, so you can take advantage of it after some time of application.
Also read: In India, the price of petrol is more than double that of New York, why is demand in Corona fast even after the decrease
Big news for those trading in Cryptocurrency, RBI gave these instructions to banks