Top-Up Loan
The Top-Up Loan, on the other hand, is an extra loan that the borrower can use to meet an emergency money demand. Personal loans can be used as an alternative to Top-Up Loans, however they are more costly. Personal loans are currently available at rates ranging from 10.75 percent to 11.5 percent, however Top-Up Loans are substantially less than personal loans because they are secured loans. Furthermore, personal loans have a maximum term of 5 years, whilst Top-Up Loans have a tenure equal to the unexpired time of the initial Home Loan.
Balance Transfer on a Home Loan
A Home Loan Debt Transfer is the process of transferring your outstanding Home Loan balance to another bank. The debt is still being repaid, but with a different lender. A loan balance transfer is decided to either lower interest costs or because the borrower is dissatisfied with the lender's service(s).
Myrupaya's Take
Both Home Loan Balance Transfer and Top-Up Loan have advantages and disadvantages. While one lowers the loan interest rate, the other provides you with an emergency fund at any moment.
Comments