Top-up house loans are available to homeowners who already have a home loan. This sort of loan allows customers to borrow more amounts on top of their existing loan.
“By increasing your existing home loan, you may take advantage of your current lender’s favourable rates, saving you money on interest payments in the long term. A top-up house loan is a reasonable way for managing your debt while keeping your budget in line,” stated Rahul Mehrotra, MD & CEO of RHDFCL.
Tenure Of Top-Up House Loans
Customers benefit the most from top-up house loans when they choose the shortest term and pay it off in full. The loan duration varies per bank. For example, the State Bank of India provides a top-up housing loan for up to 30 years.
Rahul Mehrotra, MD and CEO of RHDFCL underlines the necessity of carefully evaluating the length and cost of a top-up house loan. It is critical to select the shortest duration that corresponds to your financial objectives and payback capabilities.
Top-Up Home Loan Interest Rates
Top-up house loans often have somewhat higher interest rates than normal home loans. They also differ according to the borrower’s characteristics. According to SBI’s website, the rates for top-up house loans range from 8.80% to 11.30%.
“The interest rate on a top-up house loan is often greater than on a conventional home loan owing to the lender’s increased risk. “The difference in interest rates charged by financial institutions typically ranges between 1% and 2%,” said Rahul Mehrotra.
Top-Up House Loan Eligibility
Borrowers who have not missed a single installment in the previous 12 months are eligible for a home loan top-up. The quantity of money a bank will authorize is determined by the equivalent monthly installments (EMIs) paid.
Overall, top-up house loans are a simple choice for homeowners who want to borrow more money without having to apply for a separate or personal loan.
