Benefits of Availing a Top Up Loan


A top up loan is an additional credit borrowers can avail over and above an existing home loan.

Individuals wondering what is a home loan top up should know that such a credit is offered over and above the existing home loan of the borrower.
Here is a list of a few top up loan benefits –
  • Nominal interest
A top up loan is like a personal loan, but the interest charged is much lower. A low interest rate makes it a viable choice for any financial requirements.
  • Zero documentation
As you are already providing the necessary paperwork for the home loan,no documentation is required to avail a top up loan. This allows for a hassle-free and faster loan processing period.
  • No additional mortgage
A top up loan on a home loan requires no other mortgage. The borrower can use it for any purpose, as it is considered as a personal loan.
  • Income tax exemption
If the top up loan is used for home repairs, renovation or construction, homeowners can avail tax exemptions under Section 24(b) on the interest payments.
  • Paying off debts
One of the many benefits of a top up loan is the facility to pay off any existing unsecured debts that have a high rate of interest. Affordable interest rates charged enables individuals to save a significant amount of money over time.
Make sure you know about top up loan before availing one. These are considered as a convenient way to take care of specific financial needs, without having to worry about overbearing interest charges or collaterals.
Must Read:-  What are the key benefits of top up loan?

Location: New Delhi, Delhi, India

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