How can we use top up loan?

Can we use top up loan for personal use?

This loan can be treated as a personal loan and further used for home renovation, furnishing, home decor and other emergency fund requirement. The top-up loan is available for a time period of up to 20 years or until the balance tenure of the original home loan.

What is the benefit of top up loan?

Low-Interest Rates – The major benefit of the top-up loan is that it can be availed at low-interest rates as compared to a personal or gold loan. The regular personal loan interest rates vary between 11-24%, but for a top-up loan, the interest rates are the same as home loan interest rates.

Is top up personal loan a good idea?

“Due to the relatively lower interest rate structure and flexible loan tenure, top-up loans are a better alternative to a personal loan. A top-up loan can be taken for a maximum tenure of upto 30 years or the remaining period of your existing home loan, while a personal loan is offered for a maximum of five years.

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How do you top up a loan?

To avail a Top-up loan you need to fulfill certain eligibility criterias, which are listed as follows:

  1. You can avail a top up loan if you have an existing and running loan from a bank and the bank. …
  2. You can apply for a top up loan from your existing lender or opt to apply for a balance transfer loan with top-up loan.

Is taking top up loan good or bad?

The interest rate of top-up loans will be much like that of a personal loan. … However, to take full advantage, the interest rate has to be at least 2%-4% lower than the existing rate. This will reduce both your EMI and interest obligations.

How are top up loans calculated?

Banks will calculate the top-up loan amount, after taking into account the Equated Monthly Instalment (EMI) of your running home loan. The bank will estimate the Fixed-Obligation-to-Income ratio (FOIR) for your top-up loan, after deducting the instalments of all your running obligations.

How often can you top up a loan?

Yes, you can apply for a top up loan at any time; you don’t have to repay one loan before applying for another. If your new loan is based on a different interest rate, our system is enabled to run two or more loans on the same account at the same time.

What does top up loan meaning?

Top-Up Loan Meaning:

Top-up loan is a facility provided by banks, housing finance companies and other financial institutions that allows you to borrow a certain amount of money over and above your home loan.

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What is a loan top up?

A home loan top-up is a way of increasing your loan amount so you can borrow some extra money. If you’ve been paying off your home loan and building equity in your home, then your lender may lend you extra money. A home loan top-up often works out cheaper than using a personal loan or a car loan.

Can I take loan from IDFC First Bank?

IDFC FIRST Bank Personal Loans are not secured by any collateral or security, and are disbursed at the discretion of the Bank, based on the creditworthiness of the borrower.

How does a personal loan top up work?

A personal loan top up is where you add a certain amount on to a personal loan you already have. This involves submitting another personal loan application with your existing lender and signing a new credit contract.

How do I check my IDFC top up loan status?

Through Mobile App

  1. Download the IDFC First Bank mobile app.
  2. Enter your credentials to log in to the mobile app portal.
  3. Under the menu section, you can click on ‘Product and Services’, click on ‘Check Application Status’.
  4. Enter the details of your personal loan and click on ‘Submit’.

What is the maximum term for top up loan?

You can repay the top-up loan in monthly instalments (EMI) over a maximum term of 15 years. The actual loan term depends on factors such as your profile, age at maturity of loan, age of the property at loan maturity, etc. The term would also depend on the specific repayment scheme opted by you.

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What is top up loan interest rate?

Best Home Loan Top Up Interest Rates Nov 2021

Banks Interest Rate
HDFC Home Loan Top Up Loan 8.30% to 9.15% p.a.
SBI Home Top Up Loan 7.90% to 10.10% p.a.
ICICI Home Loan Top Up 6.90% to 8.05% p.a.
Axis Top up Home Loan 7.75% to 8.40% p.a.

Can I top up my existing home loan?

Yes. You can borrow money on an existing Home Loan in the form of Top-up Loan.