Are you planning to buy a house of your own? Confused between home loan and home top-up loan? A home is a dream come true that can be met with a home loan. A home is just not about four walls and a roof. It is a lot more than that. Buying a home makes an individual feel secure in terms of finances and social status. However, it is not an easy option to buy a home without the support of a home loan. A home loan and a top-up online home loan are very different from each other. One follows the other, and you need to understand the benefits of each of them to choose the right one. A home loan is an amazing way to cover the funds required to purchase a home when your income and savings seem to be insufficient. One needs to understand the difference and then go on and borrow so that the right loan product is chosen from the right loan provider. If you are looking for an option to borrow, you will need the right approach and this will surely help you. Understand the aspects and then compare them to make things work out in a better way.
What is a home loan?
A home loan is a type of loan that a home buyer borrows from financial institutions and loan providers. It is a huge amount of money that directly goes to the account of the property owner. It is completely secured, but there is a lot of risk involved due to the insufficient amount of funds. A home loan can be obtained from any bank or loan provider and it will be easy to have an online borrowing experience. It is easy and instant when you go to Clix Capital. A home loan comes with a huge eligibility criteria, like an excellent credit score and a high income monthly. You need to make sure you handle all the criteria in the right way so that you get the right experience to buy a home. An online home loan is a restricted loan and can be used only for the purpose of purchasing a home. It is an expensive loan and usually goes on for a long-term of about 30 years of tenure.
What is a home top-up loan?
A home top loan is an additional loan that is given on top of an existing home loan. This is applicable only to those borrowers that have a good repayment history and credit record on the ongoing home loan. This top-up loan is flexible and can be used for anything. It is pre-approved and given by the financial institutions to borrowers with a smooth repayment history. One can go for this when there is an additional need for funds for anything else apart from home purchase. It is unsecured and the rate of interest is high, but it is a good option for meeting any instant needs on the go. This will be very helpful and can cover a lot of expenses.
Home loan vs top-up home loan
A home loan is a specific loan that can be used for purchasing a home. This amount can not be used for anything apart from purchasing a home. On the other hand, a top-up home loan is flexible and can be used for anything that comes up. This loan can be taken up to meet any immediate need or an emergency. The top-up loan is a good option to get a good amount of money to meet any urgent needs.
Approval: A home loan needs approval. You need to set your eligibility criteria right and other things on track to get a home loan. Home loan approval is not so easy. However, the top-up home loan is already a pre-approved loan and does not need any documentation or any approval process. Once you accept the loan, your account gets credited with the amount and you can use it like cash for anything and everything.
Loan tenure: A home loan comes with a long-term tenure. It comes with a specific tenure of 5 years to 20 years. Now for the top-up home loan, there is no particular tenure given separately. If you have taken a home loan for 25 years and you pay off the loan within 20 years, you have the remaining 5 years to pay off your top-up home loan. This is a good way to get hold of some funds instantly and make the payment within the given tenure. It is easy and hassle-free.
Apply for a home loan only when you are capable of taking a huge amount of commitment from your income. Make sure you know the difference between an online home loan and a top-up home loan.