Top-up loans are additional credit that borrowers can request from lending institutions on their existing debts. Individuals can get this additional financial support in the middle of their repayment process.
It can be significantly helpful for borrowers since they do not have to stop their ongoing house construction project if the expenses surpass their estimated budget. Individuals looking for financing can leverage a home loan balance transfer and top-up loan calculator to understand how much they can get from the lender.
Features and benefits of a top-up home loan
Here are some of the essential features and benefits of this financial facility:
- Individuals can get a top-up loan at the current interest rate of their existing debt.
- The processing of home loan top up is simple, and individuals can get the credit faster since they do not need to undergo the exhaustive documentation processes again. This is because the necessary documents and information about customers are already available in their database.
- Individuals can use the balance transfer and top-up loan calculator available on a lender’s website to understand how much additional financial assistance they can expect.
How to apply for a top-up loan?
Here is a step-by-step process to apply for this top-up on their home loan:
Step 1: Visit the official online platform of the lender
Step 2: Log in to the portal
Step 3: Find the application form for a top-up loan
Step 4: Enter basic details as asked and mention the OTP for authentication
Step 5: Enter the loan amount and all other details
Step 6: Submit the duly-filled application form
Following these steps, borrowers can easily apply for the home loan top-up. In this regard, individuals may also need to know how top-up loans edge over a new personal loan to furnish a house.
Nevertheless, borrowers may not get this top-up home loan, or get a sufficient amount through this financing option from their existing lender. It will help them switch their existing loan account from one lending institution to another.
Before opting for this switchover, they should ideally use a home loan balance transfer calculator to make informed decisions about this financial facility. It will help them understand the impact of the balance transfer facility on the outgoing interest. They will be able to know whether their interest outflow will increase or decrease.
Some lenders also let individuals know the total top-up loan that customers can take on top of their existing debts through their web-based calculator. In this regard, individuals also need to know how they can reduce their EMIs with a home loan balance transfer.
How to use a home loan balance transfer and top-up calculator
Here are the steps that will help individuals use the virtual tool:
Step 1: Access the calculator from the website of your preferred lending institution
Step 2: Enter the total loan amount, existing tenor, present rate of interest, etc.
Step 3: Mention the interest rate of your new lending institution (if individuals do not intend to change their lender, they will have to keep the present and new interest rates the same)
Step 4: Tap on ‘Apply Now’
After these steps, you can understand how much top-up loan the financial institution will offer.
Furthermore, some lending institutions also let their customers avail pre-approved offers on their financial products, like home loans and loans against property. Eligible individuals can expedite their credit application process significantly by accepting these special deals. They only need to mention their credentials like names and contact details to check their pre-approved offers.
Top-up loan lets individuals avoid taking a new loan if their big-ticket projects need additional finance. As a result, they can avoid engaging in repaying multiple debts. Furthermore, the interest rate also remains the same as their existing debt on which they get the top-up credit.