Updated: Aug 20, 2022, 13:33 ISTShare:
Synopsis
When you need extra funds after getting a home loan, you can take a top-up loan on it or a personal loan. Here are the differences between them.
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A top-up loan on a home loan is secured whereas a personal loan is unsecured.
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A top-up comes at a lower interest rate.
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On a top-up, you can get tax benefits for home renovation/extension. Personal loans don't offer tax benefits.
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Unlike a personal loan, a top-up loan is available only on an existing loan.
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A top-up loan is available for a higher amount (up to ₹1 crore) than a personal loan (up to ₹25 lakhs).
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You can get a top-up for a longer tenure (up to 10 years).
Personal loan involves longer processing time due to fresh application and documentation.
