What is a Top Up Loan?
A top up loan is a convenient financial provision offered by select banks and financial institutions. It allows existing home loan borrowers to increase their loan amount for various purposes such as extending home construction, renovating or beautifying their property.
Flexible Tenure Options
The tenure of a top up loan typically spans up to 20 years, aligning with the original tenure of your existing home loan. This flexibility ensures manageable repayment terms suited to your financial situation.
Competitive Interest Rates
Enjoy competitive interest rates on top up loans, often comparable to those of your original home loan. This makes top up loans a cost-effective alternative to personal loans, credit cards, and loans against property.
Higher Loan Amounts
The amount of a top up loan generally does not exceed 70-80% of the property’s value, ensuring you can access substantial funds without exceeding your original home loan amount.
Streamlined Disbursement Process
Thanks to your established borrower-lender relationship, top up loans are swiftly disbursed. Your financial institution already knows your profile and repayment history, simplifying the process for both parties.
Tax Benefits and Versatility
Utilize your top up loan for a variety of purposes, including home extensions, renovations, or educational expenses for your family. Depending on the usage, you may even qualify for tax benefits, making it a financially savvy choice.
Consider Balance Transfers
Explore the option of transferring your existing home loan along with a top up loan. While this can incur balance transfer fees and foreclosure charges, it provides flexibility in managing your finances effectively.