SBI - Special Offer on Home Top-up Loan
The country's largest bank State Bank of India (SBI) has come up with a special offer on home top-up loans. Under this, the bank has decided not to charge processing fees along with giving 0.25% discount on the interest rate of top-up loan. If you have taken a home loan, then you can take a top-up loan against this loan. Under this, you get more loan at lower interest rate.
SBI - Special Offer on Home Top-up Loan
You can take this loan after some time of taking home loan. Banks generally give you a top-up loan based on the home loan repayment pattern. So, if you are paying your home loan installments on time, you can easily get a top-up home loan. You can top up a home loan just like you do a top-up recharge on your mobile phone, and the balance is credited to your phone. Since it is available only on your home loan, the top-up loan monthly installments have to be paid along with the home loan repayment. Its tenure is usually the same as that of a home loan.
How much interest is to be paid in this loan :
You will get a top-up home loan at an interest rate of around 7.50 to 9.95% per annum. Its interest rate can be 0.5 to 1% higher than your home loan interest rate. Currently SBI's home loan interest rate starts from 6.70%. Top-up home loans can be used for any purpose like home renovation, children's education, daughter's wedding or even for purchase of additional property.
Along with the repayment of the loan, the monthly installments of the top-up loan also have to be paid. Top-up on home loan can also be taken for a tenure of 30 years. In such a situation, you can easily pay it according to your convenience. In this, you can take a loan of Rs 50 lakh or more. However, your top-up loan amount depends on your home loan.