suresh. M is a 40-year-old computer scientist residing in Bangalore. He has a mortgage of up to 60 Lakhs with HDFC bank for a term of 25 years. To date, Suresh has created 48 flawless EMIs. The situation is that Suresh wants to renovate his house which will cost him around four lakhs according to his estimate. Then, Suresh is unable to pay that amount in his savings account and decides to take a personal loan of three lakhs from HDFC only because the bank has a good relationship with the bank.
SummaryAdd-on Loan vs New LoanThe benefits include:Let's see this more clearly using the math and compare the two alternatives.The benefits of an add-on loanIf Suresh contacts HDFC for a denmark billigste lån , they recommend that he take out an additional home loan instead of a new home loan.
A top-up loan can be described as a service offered by the bank to existing customers with a loan account. This option allows borrowers to receive additional funds on top of their existing loans. However, the top-up loan is only available for home loan or personal loans.
Similar to personal top-ups for loans. If you are already repaying an individual loan and you are in the mood to borrow another one. In this situation, you have two options:
A supplemental personal loan is the same as an up-to-date home loan. It is made available to customers by an existing lender. What differentiates add-on loans from new loans is that new and established lenders can offer new personal loans, while add-on loans can be made available to existing lenders.
If a customer has already paid EMI and is paying EMI, it is best to choose the best option keeping in mind the obligations to consider and after calculating and comparing each of the choices.
But, when making a choice, you have to think about your current situation while thinking about the future. Which EMIs impact your financial situation, total cost of loans, processing fees, etc.
Important Note: Like other loans, a top-up is also subject to processing fees as well as check redemption fees, and additional fees apply. Therefore, it is crucial to decide after doing the right calculation and doing your study. A top-up loan also comes with tax benefits under Section 80C and Section 24 of the Income Tax Act. Yet it is essential to use the money borrowed for reconstruction/renovation or education purposes to benefit from it. You may need to show proof to qualify for these tax benefits.