According to experts, in case of home loans, banks usually provide 70-80 per cent of the cost of the house, but many people do not opt for a full loan, so the remaining amount can be taken as a top up in future .
Taking a loan against an already running loan in the period of financial emergency is called a top-up loan. Lenders often offer loans with better interest terms to customers who have a better credit history. This is a better option than selling or pledging gold and property. At present, banks and NBFCs are providing loans at low interest rates. Let us also tell you what is a topup loan and what are the benefits for you.
According to experts, in case of home loans, banks usually provide 70-80 per cent of the cost of the house, but many people do not opt for a full loan, so the remaining amount can be taken as a top up in future . In addition, part of the debt already repaid by the borrower can be re-borrowed.
Top loans do not have any stipulation on the end use of the top loans unlike home loans where the amount is to be used for building or buying a house or apartment. A top loan can be used like a personal loan for anything like personal emergency etc. For example, these can be used for home furnishings, renovations, etc. and other costs that are not included in the home loan.
Such loans are considered by the lenders as mortgage loans and hence offer higher amount, longer tenure and lower interest rates as compared to personal ones. The biggest advantage of this type of loan is that the borrower does not require additional documentation and the KYC details of the customer are already with the bank. The entire process is streamlined as the top loan offers are automatically provided by the banks and the borrower does not need to apply afresh for the loan.
