Secured credits like home loans come with several borrower-friendly features and benefits, including the provision to avail a top-up loan. Top-up credits are offered over and above an individual’s existing home loan; financial institutions usually offer this type of credit when a customer applies for a loan balance transfer.
Top-up loans offer several advantages over a traditional home loan; these credits do not have any end-use restrictions, allowing an individual to utilise the sum according to their unique financial requirement.
Borrowers also do not have to go through an extensive application and verification process while applying for a credit, eliminating the hassles involved in getting a top-up on home loan
. However, there are certain things one should keep in mind before applying for a top-up loan.
- The loan amount should be carefully calculated before availing a top up credit. It should meet the financial requirement, without straining one’s personal finance during repayment.
- Home loan refinancing process and a top-up loan attracts several charges, like foreclosure charges, balance transfer processing fee, loan processing fee, statement charges, one-time secure fee, etc. Borrowers should carefully calculate the overall cost of the process before opting for a balance transfer and a top-up loan.
- Borrowers availing credits against fixed or floating rates of interest should consider any pre-payment or foreclosure charges applicable to their lines of credit.
Keeping these things in mind while availing a top-up loan will help a borrower reap maximum benefits from it and help them repay the outstanding debt within the pre-determined repayment tenor
with ease. Refer to select lenders with a home loan balance transfer to avail a top-up credit at the most beneficial terms and features.