When looking to do a home loan balance transfer, let lower interest not be your only priority. You can also make the most of affordable top-up loans that you may use to fulfil all your needs!
A home loan balance transfer involves transferring or shifting your home loan from one lender to another. The reasons for doing this may include getting lower interest to make your home loan EMIs more affordable, getting a longer tenure, being offered better services, and other benefits.
However, one of the most important benefits of home loan balance transfers is that along with the loan, lenders offer you the option to opt for an inexpensive top up loan, which can prove extremely beneficial when it comes to fulfilling your financial needs.
Top-up loans are basically additional loans offered to you by your new lender as an exclusive benefit, over and above your home loan. These loans however are subject to a review of your existing EMIs and an estimation of your credibility. The best part is that applying for top-up loans is easy since you already have a home loan with your new lender, and thus involves minimal paperwork. It is also very quick to get.
Top-up loans come with a low interest rate, as opposed to the much higher interest charges on other loans such as personal loans, gold loans or loans against property.
You can use top-up loans in context of your home; i.e., to do up your new home or get a part of it renovated or even to furnish it, or for any other purpose of your choosing.
Before delving deeper into top up loans, let's examine the reasons why a borrower may seek a home loan balance transfer:
Scenarios that call for a balance transfer:
1. Borrowers may seek a balance transfer when EMIs soar too high and become impossible to pay.
2. If the borrower experiences a sudden drop in income for some reason, and cannot keep paying the EMIs already signed up for.
3. Bad customer service or deterioration in services, be it unavailability of staff or inefficient online account management.
4. In certain cases, a borrower may also seek a balance transfer if they want to prepay the loan and the current lender doesn't permit this or has very high charges for prepayment.
What you get with a home loan balance transfer?
- You can benefit financially from cheaper EMIs
- You may have better customer service and experience other benefits (like EMI holidays)
- You can gain immensely from the new terms of the new loan agreement
- You can experience flexible payment options
- You can increase your repayment tenor
- You are eligible for a top up loan
It is evident that a home loan balance transfer can help you in numerous ways; however, top up loans are one of the most rewarding offerings.
Benefits of a top up loan:
1. Top up loans have lower interest rates as compared to other loans.
2. There is no limit to your use of financing from top up loans.
3. A top up loan requires absolutely no additional mortgage and can be borrowed upon your existing home loan
4. This loan is processed fast and doesn't require you to go through the formalities and procedures of applying for a loan again
5. Top up loans have longer tenors and hence allow you to spread out your EMI payments for convenient repayment
Are you eligible for a top up loan?
To be eligible for a top up loan, you need to meet the following requirements that are common for taking a home loan:
1. You should be an Indian resident
2. You should be between 25 to 62 years of age
3. You should be a salaried employee with at least 3 years of work experience
Apart from these you may need the following:
1. Be repaying your home loan for 1 to 2 years
2. Have a good repayment track record
What you need to know when it comes to top up loans:
1. You will get a top up loan as a percentage of your home loan amount, which is based on LTV or Loan-to-value ratio of your home
2. Your top up loan tenor cannot exceed the time remaining on your home loan
How can you use a top up loan?
Use the financing that a top up loan offers to fulfil your requirements, such as:
1. To raise business capital.
2. To take care of wedding expenses.
3. To fund your child's education.
4. To finance house maintenance or renovation.
5. To fund medical needs.
6. Or for anything else.
When it comes to affordable financing, Bajaj Finserv knows the value of your dreams and ambitions. Consider a Home Loan Balance Transfer with Bajaj Finserv and enjoy multiple benefits such as low interest, doorstep service and a 3 EMI holiday. Switching your home loan to Bajaj Finserv will also offer you a top up loan.