What is it & Why You Should Opt for a 2nd Mortgage Loan!
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Top Up Loan
What is a Top-Up Loan?
An additional loan taken over and above the primary loan applied is called a top-up loan. This is generally possible if you have an existing relationship with a bank/financial company you are already servicing a loan with and only after a certain amount of time has passed since the primary loan was given to you. If your current loan lender refuses to offer you a top-up, you also have the option to transfer your current loan balance to another lender (that offers you a lower interest rate for the same loan) and seek a top-up with them. Top-ups generally come with less documentation, low interest rates and nominal processing charges. Fincity’s expert advisors highly recommend going for a top-up to an existing loan than going for a fresh business or personal loan because of its obvious benefits such as considerable saving on interest, higher disbursal limit and the fact that the monthly charges will be added to your existing EMI for the primary loan, making repayment less of a headache.
Although considerably simpler in process, it’s not always guaranteed that an existing lender will approve your top-up application. Your chances are determined by factors such as your income, repayment capacity and other financial obligations.
When to Opt for a Top-Up Loan?
If you’re wondering in what situation you should for a Top-Up Loan, here are some reasonable ones:
Note : If you find yourself in a situation where you need the extra funds but the lender offering you the primary loan does not entertain a top-up, you can always use the Balance Transfer feature to transfer the current loan and request that additional top-up that you wish to. Fincity can help you choose one with the lowest interest rate and assist you along the way to ensure maximum savings.
Advantages of Top-Up Loans
There are numerous reasons why people prefer topping up a certain amount to an existing loan compared to going for a fresh loan from scratch. Here are the most prominent ones:
Whether you’re contemplating opting for a Top-Up on an existing loan with a current lender or going for a Loan Balance Transfer with a new lender, you can always seek unbiased financial advice from Fincity’s experts - your Home Loan guards committed to make sure you get access to the best loans with the best interest rates and benefits.
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