New Delhi. If you have taken a home loan some time ago and now want to get some renovation done in the house or to eliminate some other loans, then you can apply for a top up loan. Various government and private banks offer top up loans to their customers. You can take a top up loan for different purposes. These may include renovation of the house, new type of decoration of the house or meeting the emergency requirement of money. Overall, it is a kind of personal loan, which you get at low interest.
Eligibility for Top Up Loans
1. You already have a home loan with the bank.
2. If you pay the installment on time, then you get a top up loan easily.
3. Your CIBIL score should be good.
Special benefits of top up loan
1. The interest rate of top up loan is lower than that of credit card, personal loan or car loan. Home buyers adopt this option as home loans are cheaper.
2. Your home loan is already running with the bank and if the record related to EMI payment is correct, you get the loan quite easily.
3. You get more time to pay for a top-up loan than a car loan, personal loan, or gold loan.
4. You get tax benefits on top-up loans.
5. Top-up loans can be taken for a period of 20 years or a total of home loans. For this, the profile, income, age and property value of the applicant are taken into consideration. This thing may be different for every bank.
6. Many times he gets a top-up loan at the rate at which your home loan is running. However, some banks offer top-up loans at a slightly higher rate than the original rate of a home loan.
What documents are required for a top up loan
1. Identity related documents: Aadhaar card, Voter ID card, Passport, PAN card, Driving license
2. Address Verifying Identity Card: Rent Agreement, Aadhaar Card, Passport, Utility Bills etc.
3. Salary slip for salaried people (three to six months)
4. Three to six months bank statement
5. Passport Size Photo
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