Buying a home in this modern world is a dream for many individuals. With tremendous hard work of finalising the best property and proper financial planning, people apply for Home Loans to make this dream a reality.
The home buyer begins repaying the loan amount in equal monthly instalments (EMI) after making a down payment. Despite having a home loan, individuals could require more funds in some circumstances. In such a situation, many financial institutions provide Home Loan top-up for their existing customers. The immediate money requirement might well be quickly reduced by this home loan top-up.
If you also are a Home Loan applicant and need extra funds, you should definitely consider opting for an instant home-loan top-up.
What is a Top-Up Loan on Home Loan?
A top-up on a home loan is an additional sum of money borrowed in addition to your current home loan. This extra money can be used for home improvements, business expansion, unexpected medical expenses, travel, education, etc. You can pay back this additional sum by slightly raising your EMI.
Many financial institutions provide enticing home loan features that make opting for a top-up Housing Loan highly beneficial for you. Some of these benefits are mentioned further in this article.
Benefits of Instant Home Loan Top-Up
Longer Repayment Tenure
When you opt for a Home Loan top-up, the repayment tenure will be much longer compared to a personal or business loan. For instance, if you have a Home Loan with a term of 15 years, you can apply for a Home Loan top-up for the lessor or same period. Longer repayment tenure can ease the burden of the expenses by lowering the EMIs, and help you plan your finance strategically. Top-up loan will run parallel to existing home loan with a maximum term of 15 years.
Lower Interest Rates
Home Loans fall under the category of “secured loans,” which generally have lower interest rates. As a result, if you choose an instant Home Loan top-up, the interest rate on the additional amount also stays low. It may be little additional than your existing home loan.
Fast Processing
One of the top benefits of a top-up loan on a home loan is its fast processing. Many financial institutions allow applicants to apply for a pre-approved top-up loan. While applying for the top-up housing loan, only minimal documentation is required. Usually, the instant Home Loan top-up is disbursed within a few days.
Higher Loan Amount
Your chances of getting a higher top-up loan amount increase when you are consistent in EMI payments and have repaid a considerable amount. The financial institution will cross check the credit score before extending the top-up loan.
Tax Benefits
If the top-up Home Loan is utilised for acquisition, construction, renovations, and repair, in that case, tax deductions may be possible in adherence to the limits of Section 24B and Section 80C. Consult your financial advisor for more details.
Eligibility Criteria for Instant Home Loan Top-up
You can apply for a top-up loan on Home Loan only if you’re already an existing customer of a particular financial institution. The institution will not issue you a Home Loan top-up unless you have successfully repaid your EMI for at least a year.
You can calculate the Home Loan eligibility using the Home Loan eligibility calculator. Once all the requirements are fulfilled, the financial institution will disburse the top-up loan amount.
Steps Involved in Applying Instant Home Loan Top-Up
As you know by now, you must be an existing home loan candidate before applying for an instant home loan top-up. With minimal documentation, you can avail of a top-up housing loan from your financial institution.
PNB Housing offers instant Home Loan top-up to all their existing customers depending on requirement and eligibility. PNB housing offers these loans with minimum documentation for their existing customers based on eligibility criteria. Plus, the disbursement is hassle-free.
Conclusion
Instant Home Loan top-up is a great way to borrow more funds against your existing home loan. This funding can be used for various financial requirements. Repayment of this loan can be made with the existence of EMI and tenure.
PNB Housing provides quick, easy and hassle-free Home Loan top-up for any additional and immediate finance requirements.
