Why a Top-up Loan During Home Loan Balance Transfer is a Smart Way to Finance Your Needs
When you seek a home loan balance transfer, numerous lenders offer you the added facility of a top-up loan. The top-up loan interest rates are nominal and more affordable than the interest rates associated with taking a separate loan and since they also offer longer tenors to match your home loan, they are easier to repay.
Also Read : How can you benefit from a top-up loan?
Also, the home loan top-up procedure is relatively simpler and doesn’t require you to submit many additional documents. So why not go for a home loan balance transfer with top-up? It is the absolute win-win scenario for a borrower.
- Cheap and Affordable Interest Rates:
The interest rates for top-up loans are only 8-12% as compared to other loans that can go up to 20%. This can significantly lower your EMIs.
- Can be used for a diverse range of purposes:
The top-up loan amount can be used for financial needs that the home loan cannot fulfil. These could be renovating your home, financing a wedding or even going on a vacation with your family. You can fulfil all these requirements by simply taking a top-up on your existing home loan and also enjoy lower EMIs.
Also Read : When Should You Go For A Top-Up Loan?
- Top-up loans have easier eligibility requirements:
All loans have certain eligibility criteria that has to be matched before a lender can sanction your loan application. However, since top-up loans are additional facilities over and above your home loan, you do not need to meet any additional eligibility requirements other than your loan repayment ability. If you are eligible for a home loan balance transfer, many lenders see you automatically eligible for a top-up loan facility as well, and may offer it to you at low costs.
- Flexible and Convenient tenor:
Tenor is defined as the time period over which you have to repay the loan. The tenor can go up to any amount in years depending on your loan scheme. However, the tenor for a top-up loan is the same as your home loan. If your tenor is long, your EMIs would be more affordable. This would enable you to make timely EMI payments, while a short tenor can enable you to prepay your loan quicker.
- Quick and Convenient Application Procedure:
Normal loans require you to go through various application procedures. However, while applying for a top-up loan, you can eliminate these time-consuming processes and paperwork. Once you have successfully completed the formalities pertaining to your home loan balance transfer, you can simply request your lender for an instant top up on your existing loan amount. Your lender would oblige without asking you to stand in long queues and submit lengthy paperwork.
Looking for an additional loan to help you meet your personal goals? Go for a home loan balance transfer and avail an instant top up loan from Bajaj Finserv.