TOP UP - THE ANSWER TO FINANCIAL SHORTFALLS4 Reasons for why should you choose a top up instead of a personal loan for current financial crunches
Enjoy Lower interest rate
It’s no secret, the interest rate on personal loans are on the higher side, ranging around 10%-24% p.a. based on the borrowers’ credit profile and other criteria and the interest rate of loan against credit card is just higher. However, in case of top-up home loans, the interest rate is generally the same or a notch higher than the interest rate of the underlying home loan.
Higher Loan Amount
In case of top-up home loans, the eligible loan amount sanctioned by lenders is usually the difference between the originally sanctioned home loan amount and the outstanding loan amount, on the contrary, personal can amount anywhere based upon the borrower’s income and repayment capacity. the chances of getting a higher loan amount are much higher in case of top-up home loans.
Longer repayment tenure
The tenure of top-up home loans primarily depends upon the residual tenure of underlying home loans. Its alternatives such as personal loans or credit cards are around 5 to 7 years. Given that longer tenure for top up leads to lower EMIs. Similarly, existing home loan borrowers seeking longer loan tenures to finance their car purchase can also consider availing top-up home loans.
no restriction of end usage
Although top-up home loans can only be availed by the existing home loan borrowers, they do not come with any end usage restrictions except for speculative purposes. The absence of end usage restriction makes top-up home loans a great alternative to personal loans or loan against credit cards for the existing home loan borrowers.
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