Homes need refurbishing every once in a while. As such, people opt for home loans to make that happen. But many times, people are likely to be confused between top-up loans and home improvement loans. If you are also a first-timer in this sector, you are bound to be left just as confused as we are. Well, do not worry. In this article, we will talk about this and help you choose the right loan in need. If you want to estimate these loans, you can also use a home loan calculator in the market. Then, why keep waiting?
Home Improvement Loans
Today, several types of banks and NBFCs can offer home improvement loans at the right prices. When you opt for these loans, you are likely to get a longer tenure. So, they are unlike personal loans that hold a small tenure period. But you will often notice that home renovation loans are provided after determining the applicant’s home and a rough calculation of the improvement cost of the house.
What Is The Eligibility Criteria for Home Renovation Loans?
- Applicants must be nearly 21 years old. They should not have a retirement age.
- A good CIBIL score is mandatory.
- If the applicant fails to inherit a home, they can be co-applicant for the eligibility improvement.
Top-Up Loans
Top-up loans are quite easy and simple to understand. You will often notice that the rate of interest for these kinds of loans are also surprisingly lower than personal loans. As such, the tenure period of top-up loans is also relatively shorter than that of existing loans. You need not perform any extra paperwork for this type of loan. With a top-up loan at hand, you can easily repay your debt, complete a child’s education and do so much more without facing any financial crunch in the long run.
What Is The Eligibility Criteria For Top Up Loans?
- All applicants must include an existing home loan in the bank.
- They must have the current home for about a year at least.
Which Is The Best?
Both home renovation loans and top-up loans are significant when in need. It entirely depends on which one you need according to the situation. If you think you need to renovate your home, you can opt for the former. Also, top-up loans can do well if you already have an existing home. To further understand financial leverage in property investments, explore the Loan-to-Cost (LTC) ratio in this article by RealVantage..
The Bottom Line
These home loans are useful for some reasons. Make sure you look at their benefits all over again when in need. If you think you need them, make sure you speak to your home loan provider right away and get them in place. We promise; it will secure your future without any inconvenience. You will see the difference yourself. Standard Chartered Bank offers home loan up to Rs 35 crores. They have balance transfer with a top up facility too. So why wait? Apply for home loan today.
