DIFFERENCE BETWEEN HOME LOAN AND HOME TOP-UP LOAN



‘Home loans’ and ‘home top-up loans’ are very popular terms. Well, the purpose and meaning of both are very different. If you are a homeowner you probably know it well. For people new to borrowing, you need to have a good idea about the difference between a home loan and a home top-up loan. Once you are aware of the differences, it becomes easy to choose and process them. Therefore, let us discuss the differences between both and understand what they actually mean. It helps with an informed decision especially for the ones taking a fast home loan in the future.

What is a home loan?

A home loan is a rigid purpose loan that is taken to purchase a home and nothing else. It is a secured form of loan that can be recovered from the property itself if the homeowner defaults. The rate of interest and charges are low if one meets the eligibility and gets proper research done in order to find the right loan provider. Home loan eligibility and documentation is a strict one due to the amount of risk involved in it.

What is a home top-up loan?

A home top-up loan is given to those that have an existing home loan going on. If the track record of repayment is done, a top-up loan option is offered to the homeowner. If they need the number of funds they can accept it or else they can reject it. A top-up loan is a preapproved loan given to the homeowners based on their smooth repayment of a home loan. Learn How to calculate business loan by using business loan calculator.

Difference between a home loan and a top-up loan

●     Eligibility: A home loan comes with strict eligibility criteria. The homeowners need to meet the eligibility criteria in order to get a home loan. On the other hand, a home top-up loan is a pre-approved loan that does not need the homeowner to meet the eligibility and proof himself.

●     Usage: A home loan is only used for buying a property. It cannot be used for anything other than a home purchase. It is a flexible loan that can be used for anything and everything. It is instant cash in your account upon acceptance, that you can use for flexible ends.

Wrapping up

A home loan is definitely the best way to fulfill the dream of having a new house. If you need a smooth and fast home loan online, you can visit Clix Capital and apply for the same. A good home loan repayment track record always offers you a home top loan up for the extra need of cash.

Must Read : Tips To Reduce The Burden Of Higher Interest Rate On Your Existing Home Loan

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