A home loan not only acts as the primary funding source for buying a house but it has other benefits too. A home loan is probably the longest loan of our lives as it goes on for decades. So, if you have a good repayment history and a good relationship with your lender. You are bound to reap some benefits from the lender. A home loan is also a good opportunity to build a credit history and create a good credit score. Having a home loan also opens door to other benefits, the two common benefits are:
Home Loan Balance Transfer
During the loan tenure, the borrower might come across lenders who may offer him lesser interest rate on the home loan. That may tempt the borrower to switch lenders. This helps the borrower to save money.
Benefits of Home Loan Transfer
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Home Loan Balance Transfer can lower your EMI and helps you save significant amount of money.
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The rate of interest may be reduced by your current lender while transferring from one lender to another.
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There is a chance of your credit score going up when you transfer your loan.
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While transferring the home loan, you can negotiate terms with your new lender and then select the one that suits your needs the best.
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The tenure of the home loan can also be reduced while transferring the home loan.
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Home Loan Balance Transfer allows you to select a lender that provides better customer service as opposed to the current one.
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Because of the advancement in technology, getting a home loan balance transfer is easier than it used to be.
Top-up Loan
The other option that will be offered by the current lender to the borrower, is to take a top-up loan. A top-loan may help you clear off any other parallel loan that is running or take care of any other expense at home. You can also use the top-up loan to either renovate your home or redecorate your home.
Benefits of Top-Up Loan
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Top-up loan is offered at a competitive rate and works as a personal loan.
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The tenure of the top-up loan can go upto twenty years.
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The top-up loan amount can be used for various reasons like buying new furniture, renovation and other personal need.
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If the top-up loan is used for home renovation or even extension of the home, you can avail tax benefits.
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The interest rate for top-up loan is low.
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You don’t have to pledge any security to avail the top-up loan.
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Availing the top-up loan is easier for both existing borrowers and those transferring the loan.
We hope this helps you to decide the move on your existing home loan. Whether you transfer the loan or get a top-up, ensure that this is done after the terms and conditions are as per your convenience. And all those who terms work in your favour and, come without any hidden charges.
Looking for a home loan? With Finserv MARKETS, availing a home loan online is easy, convenient and completely hassle-free. So why wait? Get your home loan with us today and realise your dream of owning your dream home!
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!
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