: Home Loan Top-Up #IndiaNEWS #Business You might have an existing home loan. If you have had a history of timely EMI payments for this loan, you can avail of a home loan top-up. A top-up loan is

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Posted in: #IndiaNEWS #Business

Home Loan Top-Up #IndiaNEWS #Business
You might have an existing home loan. If you have had a history of timely EMI payments for this loan, you can avail of a home loan top-up. A top-up loan is like an extension of your current home loan, and it only comes without limitations. This type of loan is a suitable one to opt for when you want low-interest rates and speedy money.
Once you have obtained a top-up home loan, you can use it for several reasons. A top-up home loan is highly recommended compared to a new home loan because these are fairly affordable. Also, you need not undergo a lengthy application process, as with a new home loan. Learn more as you read.
A Brief About Top-up Home Loan
Consider that you have obtained a home loan of Rs. 70 Lakhs from your bank. The duration of this home loan is 15 years. But after seven years, you have already paid off most of the money and are left with an outstanding amount of Rs. 35 Lakhs. At this point, you can opt for a top-up home loan when in need.
Generally, in this type of loan, your total top-up amount and the outstanding loan should not exceed the limit of Rs. 70 to Rs. 80 Lakhs of the property’s worth. However, the factor will also be reliable from lender to lender.
What Are The Benefits of Obtaining From A Top-up Home Loan?

Enjoy the flexibility of planning for loan repayment for a longer duration. This can help cut down on the EMIs you pay monthly.
The process of this loan’s approval is simple. However, you must have a property loan to ease the process. The payment history must also be good.
Quick disbursals for your convenience.
Get access to high proportions of the market value of the property.
You can use these loans for a multitude of reasons. Cater to your personal needs, pay medical bills and even purchase furniture using these loans.

What Are The Documents Needed For This Loan?
Since your lender already has sufficient information about you because of the current home loan you purchased, you may need to submit minimal documents for your top-up loan. The paperwork will eventually be lighter.

Proof of workplace
Account statement
Proof of income
KYC
Papers of the property
Address proof

Ensure all of these documents are updated to provide the lender with accurate information.
What Is The Eligibility Criteria of Such Loans?
Generally, the top-up loan eligibility requirements differ from one person to another. But, you must keep certain factors in mind.

If one of your EMIs has bounced, make sure that it is taken care of before the next EMI.
There should not be an EMI bounce in the previous year.
The LTV should not exceed 70 to 80% of the property value.
The lender will also consider your loan repayment track record.

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