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Tata Capital > Blog > 5 Benefits of Getting a Top-up Home Loan when Facing Financial Shortage

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5 Benefits of Getting a Top-up Home Loan when Facing Financial Shortage

5 Benefits of Getting a Top-up Home Loan when Facing Financial Shortage

Facing a financial crisis? Read on.

Are you looking to take care of a sudden medical expense, get emergency repairs done at home, clear pending debts, make a necessary purchase, or finance an urgent trip? As a housing loan borrower, instead of draining your hard-earned savings, you can use a top-up home loan to ride this wave of financial shortage.

Top-up finance is a facility offered by lending institutions where you can borrow an additional sum of money over and above your existing house loan. Let us look at how a top-up loan can tend to your immediate financial needs during a cash crunch.

1. No restriction on end usage

First off, you can use a top-up house loan in any way you deem fit! This is because there is no restriction from the lender on how you use these funds. Whether it is a medical emergency,d or your property builder has suddenly overshot the initial budget and your overall expenses have increased, top-up finance can seamlessly fund your needs.

Besides, if several pending high-interest loans and credit card bills are weighing you down, you can use the loan to consolidate your debt as well.

2. Lower interest rate

The top-up house loan rates are relatively lower and only slightly higher than your current home loan interest rates. Moreover, with a healthy repayment history and a CIBIL score above 750, you can land even more lucrative rates on your top-up loan!

Additional Read: Difference Between Balance Transfer Home Loan and Top Up Loan

3. Longer repayment tenure

When it comes to repaying a loan, an extended repayment term can be a great boon. And housing loan top-ups come with longer tenures depending on your underlying loan. What’s more, a longer loan term means you pay smaller EMIs. Hence, it reduces your monthly debt burden.

4. Higher amount

Did you know that a decent credit record highlighting timely repayments can get you a higher loan amount? Well, if you have repaid a significant proportion of your original home loan and have a repayment history with zero defaults, you can qualify for a larger top-up amount.

5. Quick processing and disbursal

Perhaps the most significant advantage of a top-up loan is that it is easier than opting for a brand new loan. How? This is because you already cleared the home loan eligibilities and submitted the necessary paperwork when you applied for home finance.

Also, your existing relationship with the lender means you receive quick processing, loan sanctioning, and a faster disbursal of funds. Hence, it is ideal for meeting an urgent financial requirement.

Additional Read: Which One Should Be Taken – Home Loan Top Up or A Personal Loan?

To sum up

When financial emergencies crop up unannounced, an immediate influx of funds can help. If you are facing a financial shortage and require a top-up housing loan, turn to Tata Capital! We offer customisable home finance products, including top-up loans that can be tailored to fit your needs. Check out our home loan eligibility criteria and top-up home loan rates before starting the process.

You can even opt for a flexible repayment plan considering your financial capabilities. Just log on to our website and say goodbye to your financial woes today!

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