When you take a home loan, it does not only serve as the primary financial aid for buying your home. There are many benefits that existing home loan customers can take advantage of. The most important thing about home loan is that it helps you to buy property without putting much financial burden on you.
Home loan is the best example of good credit. There are many benefits of a home loan. After the loan is fully repaid, it makes you the owner of the property. Apart from this, capital appreciation is much more for your own than the investment made by you in the last few years.
The home loan usually lasts for decades and during this period the loan customer is able to take many benefits of the existing home loan. In this article, we will tell you about two benefits of home loan. One of these two will help you in reducing the cost of loan, while the other will work to fulfil the need of additional fun at any time. The two words that we are going to talk about in this article are Home Loan Balance Transfer and Home Loan Top Up.
Home loan balance transfer
Home loan balance transfer is the process through which you can transfer the balance of home loan to another lender. With the balance transfer of the loan, you can run your loan with the new lender. Most of the times, you get the benefit of low interest rate from home loan balance transfer.
These days most loans are taken at floating interest rates. Whenever there is an increase in the MCLR, the interest rate with which you are repaying the loan has an effect on the balance transfer in such situations acts as a shield against the fluctuation of interest rates.
Every businessman wants good customers to come to him and even the bank is not untouched by this. If you are honest with EMI, have excellent credit history, then every financial institution will welcome you by giving good customer status. In such situations you can negotiate on interest rates. It is needless to say that the lenders give loans to customers whose repayment history is good.
Due to low interest rate, you have to pay less EMI. You may save less money but when you add it, you will be surprised that you saved a lot of money in the total loan cost.
Home loan top up
Home loan is a great option for top up personal loan. Many times when we need money, we choose personal loans. Personal loan is not the only option to get money for various tasks. There are many options that are better, cheaper and faster than personal loans. Home loan top-up is one of those options. Any person can top up their existing home loan. Home loan top up can be used for various purposes. You can use this loan to buy home furnishing, wedding expenses, holidays and to buy home appliances.
Home loan top up is a more economical way to take an emergency fund than a personal loan. The current rate of personal loan is 11.99 percent. While the rate of home loan top up is 1 percent higher than the home loan interest rate. Home loan top up is much cheaper as compared to personal loan.
It is believed that by applying online for personal loan, its processing is quick and the money also gets into the account immediately. But the process of home loan top up is even faster. The reason for accelerating the process of home loan top up is that your documents are already available with the lenders. Only you have to give the application of home loan top up to the lender. In the home loan top up, the process of verification of documents is left out. So taking a home loan top up is a better financial decision than a personal loan.
What was the result
Home loan is a loan that is available at very low interest rates. Home loan comes with many benefits. It also fulfills your dream of taking home. Home loan is such an investment, after which you become the owner of the property. Tax is also saved from home loan as well as home loan transfer process also reduces the cost of your loan. Apart from this, you also get emergency funds from top up home loan. The benefits of home loan are always better for the customer.