Sunday, 29 July 2012

Home loan top up is cheaper than personal Loan


These days if you have Home Loan on your house you can get top up on that loan for your personal use. The top up Loan on your home Loan is much cheaper as compared to the Personal loan. It’s come with a interest rate of 13-14% p.a. as compared to the Personal loan whose Rate of Interest is ranging from 15-20% as well as higher Processing Fees.

So if you need personal loan for your personal use like sisters or daughters marriages etc. you can go for home Loan Top up on the existing Loan or loan against property as the same is much cheaper than the personal loan & very easy to process.

If you already have home loan you just need to approach your existing financer for top up on the same. The financer will provide you the loan faster as the property is already mortgaged to them if the financier have margin for the same. Since the end use of the loan is different & not for home purchase or construction, obviously the rate of interest for the top up loan will be higher. However the interest rate on your home loan portion will be same as of earlier & will not be effected by your top up loan interest rate. Financer will just treat those as two separate loan account though the property is same.

Same way if a person does not have any loan on his home can approach financers for his/her business loan/ personal loan needs by offering house as mortgage for cheaper rate of interest.

[For any query on the said matter write your query to Housingfinance.advisor@gmail.com]
Posted by at
Location: India

12 comments:

  1. Unknown21 August 2012 at 22:35

    Thaks a lot sir, This gives some links too for further observation.I find many adverse results.

    Loan Against Property

    ReplyDelete
  2. Housing Finance Guide20 September 2012 at 09:05

    Those are ads only & not for further information. You can write here if you needs further informations

    ReplyDelete
  3. Anonymous17 October 2012 at 23:20

    nice..

    ReplyDelete
  4. Personal Loans18 October 2012 at 00:01

    that’s a great information, I didn’t thought its possible, thanks! I may use my Home loan next time.

    ReplyDelete
    Replies
    1. Housing Finance Guide25 May 2013 at 23:38

      Thanks as you like the article. You will get that loan a bit higher than the rate of your Housing Loan but a lot cheaper than the Personal Loan.

      Delete
  5. Network Capital Funding Corporation10 May 2013 at 22:55

    It is very important to make the right decision with regards to your loan, so don't be drawn into refinancing unless you are completely certain that it will benefit you in the long run.Taking the steps to re-finance your home can be quite complicated.

    Network Capital

    ReplyDelete
    Replies
    1. Housing Finance Guide25 May 2013 at 23:35

      Its a time consuming job only not complicated one. But to save borrowing costs to a huge extent time can be consumed. Further more Home laon top ups is quite cheaper than the Personal Loans.

      Delete
  6. Anonymous31 August 2013 at 14:27

    I have been browsing online more than 3 hours today, yet I never found any interesting article like yours.
    It's pretty worth enough for me. In my view, if all website owners and bloggers made good content as you did,
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    ReplyDelete
  7. Unknown13 November 2013 at 00:49

    Hi Sir, Excellent Article on Property Buying loan. Thanks for sharing !!!
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    ReplyDelete
  8. Unknown14 February 2014 at 00:04

    This comment has been removed by a blog administrator.

    ReplyDelete
  9. Manish24 October 2015 at 00:15

    I agree with this. Home loan is cheaper than person loan. Many banks provides home loan instead of person loan.

    ReplyDelete

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