Can I use top up home loan for personal use?

Can we use top up loan for personal use?

This loan can be treated as a personal loan and further used for home renovation, furnishing, home decor and other emergency fund requirement. The top-up loan is available for a time period of up to 20 years or until the balance tenure of the original home loan.

Is top up personal loan a good idea?

“Due to the relatively lower interest rate structure and flexible loan tenure, top-up loans are a better alternative to a personal loan. A top-up loan can be taken for a maximum tenure of upto 30 years or the remaining period of your existing home loan, while a personal loan is offered for a maximum of five years.

What happens when you top up a loan?

A Top up loan meaning an extra loan is a financing option that is offered over and above the existing loan amount for products such as home loan and personal loan. The top-up loan is offered to customers who have an existing relationship with the lender, have a good credit score and have repayment ability.

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Can we take home loan on existing home?

You can use your self-occupied residential or commercial property to borrow a loan. The property is used as collateral and the loan is disbursed by the lender as per the property value and your income to pay back the borrowed amount.

Does topping up a loan affect credit score?

You’ll see the top-up rate you’ll actually get, and the quote won’t affect your credit score.

How does a personal loan top up work?

A personal loan top up is where you add a certain amount on to a personal loan you already have. This involves submitting another personal loan application with your existing lender and signing a new credit contract.

Is taking top up loan good or bad?

The interest rate of top-up loans will be much like that of a personal loan. … However, to take full advantage, the interest rate has to be at least 2%-4% lower than the existing rate. This will reduce both your EMI and interest obligations.

What is the eligibility for top up loan?

After 10 years the outstanding amount is Rs. 48 lakh, and you would be eligible for a top-up loan. Top up loan eligibility basically requires you to be a creditworthy existing home loan borrower who has paid EMIs on time for a certain period of time.

What is the maximum term for top up loan?

You can repay the top-up loan in monthly instalments (EMI) over a maximum term of 15 years. The actual loan term depends on factors such as your profile, age at maturity of loan, age of the property at loan maturity, etc. The term would also depend on the specific repayment scheme opted by you.

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How often can you top up a loan?

Yes, you can apply for a top up loan at any time; you don’t have to repay one loan before applying for another. If your new loan is based on a different interest rate, our system is enabled to run two or more loans on the same account at the same time.