Which is better Top-up home loan or personal loan

Taking on any type of loan brings a lot of burdens that require a strong financial commitment. This is because whatever you borrow is a debt that needs to be repaid, as well as interest on the position you have chosen. Therefore, before you take out a loan you need to be careful and careful before you apply. Most banks and non-bank financial institutions offer different types of loans to finance different people's needs, including housing loans, car loans, personal loans, gold loans, and more. Among these loans, some fall under the secure category and some fall into the unsafe category.

What is a personal loan?

Personal loans are a type of unsecured loan offered by all top lending institutions. Loans are available online and can be obtained in the comfort of home or personal office. The interest rate on this loan is slightly higher than for others to consider. However, there is no limit to the ultimate can be obtained for any personal need.

  What is an increase in a home loan?

Top Up Loan is an additional loan that you get from your home loan lender in addition to your home loan. Loans require less documentation as you already have an existing account with the lender. With Top Up Home Loans you can renovate, expand or do any other type of work to build or renovate your home. However, there are limits to end-use but the best part of the same personal loan interest rate is the same as that of a home loan that makes it easier for customers.

Now let's compare the two loan details:

1.Interest rate

Home loan loans are always available on your existing loan. And the benefits of choosing this are - you get a higher home loan with the same interest rate where you get your ongoing home loan. This makes your borrowing process easier and more accessible to consumers. Another important point to know here is that - the lender takes your home as collateral and does not ask you to provide additional security and you get it at a cheaper price. When you get a personal loan the interest rate remains high and usually comes to 10-16%. However, personal loans are completely secure and you do not need to provide any security for them. People can use the Indian Overseas Bank personal loan emi calculator to check the installment beforehand.

2. Loan tenure

Home loans are usually offered for a period of 20 to 30 years, and if you choose an extra loan, you can get an extension for a loan period of about five to seven years. However, with a personal loan, you can get a maximum credit of 5 years. So, in terms of repayment and higher home loan offers you better flexibility.

3. Loan disbursement period

With a personal purchase loan, the issuance of the loan usually takes 4-5 days. This is because it is a secured loan and your lender needs to renew the paperwork made when you get a home loan. However, if you are in an emergency and need an emergency loan payment, then a personal loan is your best option. Most lenders today offer instant personal loans and money is deposited into your account within hours through online processing. In small letters. If you need money urgently, you can choose to borrow money.

4. End-use restrictions

When you get a personal loan you have no limits to ultimately use it. You are free to use the loan anywhere according to your needs. But if you get an extra home loan there are some limitations to use in the end. This includes spending money only on construction / renovation / expansion or ventilation.

Conclusion:

However, among all the differences the most important point is that additional home loans can only be obtained by those who already have an existing home loan. While anyone can get a personal loan and can meet his or her financial needs. However, if you already have a home loan and are traveling with coins do not forget to look at things like EMI and tax benefits before choosing any of these loans.

Also Read:- 10 Simple steps to ensure home loan