Weddings are one of the big-budget expenses that require a lump sum amount. Often, wedding expenses run into lakhs, which may exhaust the entire savings of a lifetime if not planned properly. In such a scenario, the smart way to meet these expenses is by availing external funding from a financial institution.
Today, it is relatively easier to avail home loans to purchase residential properties. In case you have an existing home loan, you can fund your wedding expenses easily with a top-up loan. It is a credit that can be availed over and above the home loan amount and is sufficient to meet any other personal expenses that involve lump sum investment.
You can also avail of this loan by opting for home loan transfer from your existing lender to the one offering lower interest rates and a high-value top-up amount. It is a more convenient solution compared to other financing options as its approval does not require you to meet further documentation and a long list of eligibilities. This credit comes along with many other advantages that you can avail over and above meeting the wedding expenses.
How Is A Top-Up Loan Beneficial?
The most remarkable advantage of a top up on home loan is that this additional amount does not come with any usage restriction. So, you may use it for several purposes as and when needed.
Know the loan amount you will be eligible to avail post the balance transfer of your existing loan with a top-up loan calculator and apply for the same. Here are a few advantages that make this loan beneficial and unique.
- Reduces The Risk Of Having Multiple Loans On Your Name
Numerous loan applications on one name bear a negative impact on a person’s CIBIL score, thus reducing his/her credibility. When opting for a top-up, this risk gets eliminated as the loan is sanctioned based on the existing loan and no new application is involved. It also helps consolidate debts by bringing two loan amounts in one place.
- You Can Avail It Without Paying Any Extra Charges
Availing a top-up loan over and above an existing housing loan in India does not attract any additional charges. All you need to do is pay a minimum fee, which is negligible as compared to expenses involved in availing a new loan.
For example, you do not need to pay any processing fee or one time charges when availing a top-up.
- The Interest Rate On This Loan Is Affordable
The top-up loan interest rate is lower as compared to other unsecured loans. This makes it an affordable credit option. It is also one of the cheapest loans available.
Some of the renowned financial institutions also offer home loans at an affordable rate of interest, which makes managing finances easier while owning a property. Before you avail of this loan, check the payable EMIs with the EMI calculator to get an estimation of the probable monthly outflows.
- It Requires No Extra Documentation
While you transfer your existing home loan balance to the new lender, they also get access to documents and verifications done earlier. Therefore, the documentation procedure for a top-up loan is minimal, thus leading to reduced time for approval.
- Brings An Option For Tenor Renegotiation
Since this loan increases the total credit amount, you can ask your lender for a tenor extension. A longer tenor means high affordability through lowered EMI payments.
With these advantages, a top-up amount becomes beneficial for both meeting instant financing of marriage expenses and ease of repayment.