What is a top-up home loan and how much can you get?
A top-up home loan offers borrowers with a good repayment history an additional loan on top of their existing home loan. The loan amount depends on the outstanding amount and repayment capacity. Interest rates are similar to home loans, and tenure...
By ET CONTRIBUTORS |
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Smart things to know about top-up home loan:
- A top-up home loan is an additional loan that you can borrow on top of your existing home loan provided you have a good repayment record.
- The top-up loan amount depends upon the outstanding amount on the current home loan and the repayment capacity of the borrower.
- Interest rate is usually similar to or slightly higher than the current home loan interest rate.
- The top-up loan tenure usually aligns with the remaining tenure of your home loan, but some lenders may offer flexible options.
- One can use the funds for various purposes like home renovation, education, medical expenses, business expansion, etc.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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