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.