Some situations in life come that breaks you apart. That can be a medical emergency or a financial one. To overcome these situation people go for a loan. But not everyone aware of how to deal with these situations and to whom they should approach.
Both home loan and personal can be taken to overcome financial crises. Whether it is a personal loan or home loan top-up amount will be the same for what you have applied. It can be used for any purposes like monthly payment, medical emergency, vacation, wedding etc.
But the question is which loan is better in what way. We will compare to check for this.
What are home loan top-up and a personal loan?
Home loan top-up is an addition to your home loan. To get the top-up loan customer should be repaying the amount for at least one year. The borrower can get tax benefit on top-up loan only if they are using the amount on child education or renovation. There is no new document required if you apply for a top-up loan.
A personal loan is taken for financial crises, medical emergency or to pay the debt. It can be for any purposes. It is an unsecured loan so the interest rates are relatively higher as compared to other loans.
Comparision between a personal loan and home loan top-up
- Unsecured loan
- Lower repayment period
- Higher interest rate
- Lengthy document
Home loan top-up
- Collateral already provided
- Higher repayment period
- Lower interest rate
- Documents already provided
By now you must be clear about which loan you should take, which will fulfill your requirements. Customers those already have a home loan will be benefited if they opt home loan top-up.