Top up Loan in India
What Are Top-Up Loans?
It happens sometimes that we need someone to help us, who can fulfil our dreams and requirements. Isn’t it would be wonderful if someone understands all our dreams, aspirations and is always there to help us? So here is one such product that will fulfil the criteria a top-up loan. It is a financial help that is provided by the banks so that we can easily accomplish our dreams with little more financial aid.
We can understand more what a top-up loan is?
It is a loan which is given by the bank over and above the home loan. The way you top-up your mobile balance if you are running low balance. Similarly, banks give top-up loans over your current balance.
Features of Top-Up Loans:
The facility which is provided by banks and other financial institutions and allows you to borrow some amount of money over and above the home loan is Top-up loan.
Top-up loans can be taken for any purpose it could be for any purpose, not just home related. You can treat the loan as personal loan and use it for a vacation or wedding or to buy jewellery, or to pay for some other expenses. It all depends on you and it’s your choice how you spend that money.
The top-up loans are easily available at interest rates similar to home loan rates. It has a few basis points which are higher than the interest rate of the original home loan. For example, SBI offers home loans at 9.4%, and top up loans at 9.5% for up to Rs.25 lakhs.
Benefits of Top-Up Loans:
Below are some benefits of top-up loans over the personal loan or maxing out credit cards and reasons why people prefer top-up loans:
- The interest rates of the top-up loan are quite lower than the credit card, personal loans and car loans. The range of top-up loans’ interest rate is 9% to 12% in most banks.
- One of the best advantages of top-up loans is that it is easily approved and distributed.
- It also gives you tax benefits.
- The greatest advantages of Top-up loans over personal loans as top-up loans are available for a longer tenure.