What is top up loan and how you should use it?
By Evente Clinic
If you have an urgent requirement of money, what will you do? Most of us go for personal loans. Right? For some it is a good thing to do but not for everyone. There is another category of loans which most of you may not be aware of.
We are talking about Home loan top-up. Home loan top-up is a smart financial move for you if you need money given you already have a home loan. It is more efficient both in terms of interest cost as well as duration. To explain it better – Top-up on a home loan is an addition to your already existing home loan. If you are already in the process of repaying the loan amount and doing it without missing any of your EMIs, you can avail of the top-up facility by agreeing to the terms and conditions laid down by the bank.
Most of you may think still think why not to apply for a new loan than disturb an existing loan? The thought process you must be going through while contemplating from where to arrange funds is that how can I easily arrange funds at the lowest interest rate available in the market, isn’t it? The brand new loans can be a personal loan, a loan against property, a gold loan or any such loan which you can avail against collateral or even without collateral. But if you would have ever taken a loan, you would know it is not an easy process, it comes with a lot of paperback and headaches.