Updated: Aug 18, 2022, 14:28 ISTShare:
Sometimes, after taking a Home Loan or a Loan Against Property, you may need more money to finance other goals. You can meet such needs with a Top-up Loan, on your existing Home Loan.
What you can fund with a Top-up Loan:
By taking a Top-up Loan on your Home Loan, you can finance the following expenses:
Home renovation or extension
Child’s education or marriage
Any medical emergency
Holiday or other travel needs
Purchase of consumer durables like TV, wishing machine, fridge, etc.
Purchase of business assets like laptops, printers, furniture, etc.
What you cannot fund with a Top-up Loan:
You cannot use the Top-up Loan for any speculative activity, like trading stocks or commodities.
Benefits of a Top-Up Loan:
There are several advantages of taking a Top-up Loan. Here are some of them:
You can apply for a Top-up Loan online
Enjoy attractive interest rates (lower than that of Personal Loans)
Simple documentation, as you already have a Home Loan from the lender
Loan disbursement is very quick. Some Top-up Loans are disbursed immediately, while others may take <24> to <72> hours
The loan amount may be as high as Rs <1> crore each, with a tenure of up to <10> years.
The loan amount can be added to your existing EMIs, so that you don’t need to make separate payments and remember different payment dates.
How to ensure your eligibility?
People who have diligently paid their Home Loan EMIs for 1 year become eligible for a Top-up Loan. You can work towards easy eligibility for a Top-up Loan, by ensuring that you make your Home Loan EMI payments on time. Delays and defaults in repaying your Home Loan have severe consequences on your creditworthiness.
How to get a Top-up Loan?
You can request your current lender to offer you a Top-up Loan. If this is not the case, consider a Home Loan Balance Transfer to benefit from loans at a lower interest rate. You can choose a lender that offers Instant Balance Transfer and allows you to generate your balance transfer sanction letter online, in just a few clicks.
Keeping in mind the above, you can go ahead and plan your other expenses. Looking for more information on Home Loans or Top-up Loans? Read other ICICI Bank blog posts for more clarity.