Updated: Aug 18, 2022, 16:15 ISTShare:
If you are looking for an easy loan, your search ends with a Top-up Loan. This is the ideal option when you need quick funds. They are disbursed within the minimum possible time, enabling you to tackle the urgent situation, such as a medical emergency, without wasting any time. With a loan tenure of up to 10 years, you can repay comfortably without overburdening your monthly budget. With a Top-up Loan, you can borrow up to Rs 1 crore with affordable EMIs.
Otherwise too, a Top-up loan is useful for multiple reasons. For example, the fund usage is not limited to home purchase, construction and renovation. You can use it for a variety of purposes, including your child’s education, buying consumer durables, family holidays and organising a wedding.
With so many benefits, what are the expenses associated with a Top-up Loan?
Here’s a simple guide:
Fees for a Top-up Loan
An instant Home Loan is processed with special fees. It is less likely that the bank will charge once again for a Top-up Loan. This is because you have already paid the fees on your existing Home Loan or Loan Against Property (LAP). Instead, you enjoy lower interest rates and a longer repayment tenure. You can even get 100% of the original loan amount sanctioned through a Top-up Loan. However, it is always a good idea to clarify the fees and charges with the lender. You might be charged a certain percentage, depending on the amount and chosen repayment term.
Simply, make sure you have a sufficient Home Loan amount, good repayment history, and have paid the loan instalment for a minimum of one year. Now, you can enjoy the Top-up Loan, along with an Overdraft facility, and conveniently fulfil your financial goals. The interest is only paid on the amount utilised. Further, there is a single consolidated EMI covering both the initial Home Loan and the Top-up Loan.
A Top-up Loan is affordable, quick and convenient. It does not require tedious paperwork either. In addition, you do not have to provide assets as a collateral. This makes the borrowing experience a breeze.
Read more about Top-up Loans, Home Loans and LAPs on other ICICI Bank blog posts.