Many reputed banks offer a top up loan to existing home loan borrowers. The tenure of this loan can be anywhere between 15 and 20 years. It will mainly depend on the term of the home loan.
Even though the tenure of top up loans is based on the home loan term, many banks decide the tenure on the basis of their evaluation. They consider several factors like the borrower’s repayment capacity, credit history, value of the property and outstanding home loan amount. Only when the criteria are met, the bank sanctions the loan amount. Usually, the top up loan and outstanding home loan amount does not exceed 60% of the property’s market value. 10 Lacs INR is the maximum limit under this type of loan.
What are the benefits?
You can apply for this loan and use the amount for meeting personal requirements such as, furnishing a house, high education, purchasing furniture, business needs, marriage purpose or to meet medical needs. According to experts, if borrowers utilize this loan for acquiring add-ons to their existing home or to make certain modifications or renovations, they can claim tax benefits for the same.
Compared to applying for a personal loan, the process for top up loan application is shorter and simpler. Since you will be an existing customer of the bank, you will get it done easily.
Choosing a reputed home loan lender
It is very important to choose one of the reputed home loan providers in Mumbai. Only when you get a good lender, you will get to enjoy attractive interest rates and other benefits. From understanding documentation requirements to learning more about the different types of loan requirements, there is a lot of preparation that should go into obtaining a loan.
Top up loans on existing home loans - https://sites.google.com/a/mymoneykarma.com/home-loan-balance-transfer/top-up-loans-on-existing-home-loans
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