What Are The Pros & Cons Of Taking A Top-Up Home Loan?

Home Loans are essentially commitments which last for a notably longer duration, generally for about 10 – 20 years.  Buying a house is a crucial and heavy task which is inclusive of extensive planning, fund management and home loan execution along with managing all the added cost and the cost of ensuring that the investment is in the right place and for the right property. The major problem that people face is how to secure a home with meagre and limited budget. You are required to pay a regular EMI amount, for this you need to have a decent salary and enough money to handle any emergency and uncalled for costs. To take away these worries, you may resort to Top-Up loans on Home loan which will comfortably help you meet expenses without being heavy on the pocket.

A Top-Up Loan is essentially the additional loan which is secured over and above the existing home Loan this helps meet the additional and sudden expenses that just emerged out of the blue. The existing home loan lender helps avail the loan as it is offered as an additional loan on the house. Banks usually offer a maximum of 60-70% of current market value of the property. The loan also acts as a goodwill credit to the customers who hold a decent and good credit history.

Pros & Cons of taking home loan balance transfer and top up  


home loan balance transfer and top up

  • Top-Up loan doesn’t involve voluminous documentation and paper work, since the bank already has all the details required due to handling the existing home loan for you. With all the documentation already taken care of, you are left with a swift and faster processing, which is much faster than home loan.
  • Top-up loan acts as a guard and extra financial support in times of crisis. This comes prominent especially when the home loan fails too suffice enough for the situation.
  • Any of your expenses can be catered well with top Up Loan as it is taken on the home loan. For instance, you might have home interior expenses, buying in new furniture expenses, or taking care of personal expenses. You are not required to provide a proof of expenses to the bank to procure a loan.
  • A home loan top-up is generally more or less the same rate as your home loan. This has been the major and one of the prominent reasons which has led to people turning towards top-up home loans. A regular personal loan may cost you higher than a top-up loan. Hence, you may save lot more if you opt for Top-up loan.


home loan balance transfer and top up

  • A Home Loan Top-Up is not available for anyone who doesn’t have a home loan. Only the home loan customers can avail it. If a person has had a bad credit history or suffers some default payments, he can’t avail the Top-up loanat all.
  • We tend to ignore a visible fact that the future liability of EMI is scaling new heights in the bargain. Your income is still the same; and yet, you have one additional portion of the amount that falls under the repayment category.
  • You will be required to avail the top-Up Loan from the same lender no matter what your relationship is with the bank.

While a home loan balance transfer and top up  brings in financial stability which is imperative when we need positive and negative aspects of having it inclusive of the present home loan. You must begin with a deep dive analysis and make sure you know what is beneficial for you in the long run. Be sure if this is a great solution or it is just a temporary shift from the current crisis.

How to Avail Home Loan Against Unapproved Property?

The property which isn’t part of the city’s master plan is called ‘an unapproved property’. Unapproved properties can’t be bought or sold with ease. It is because of the lack of legal and clear documents that lending partners refrain from indulging in any dealings on the property. Delhi NCR area witnesses plethora of unapproved colony or areas. Generally, these unapproved colonies or areas share an efficient connection with the urban cities of Delhi & NCR. The reason for the popularity is better connectivity and low property price. Due to an upsurge in demand, construction practices prevail in unapproved area and colonies. To fulfill the rising demand and popularity of the unapproved colony, there exist a few lenders who agree on providing home loan on the unapproved property.

Home Loan Image By Loan On Phone

Home loan against unapproved property can be borrowed on different types of properties. Independent house of the unapproved area is one such arrangement. You may also lend from bank to purchase a single flat in an unapproved are up to the 3rd floor. You may also opt for a loan when you wish to construct a home post buying the plot. A fresh construction is also funded by the bank. In case of fresh construction, the loan is disbursed only after the property papers are duly checked and in custody of bank for record and assessment purpose.

For any home loan application to get approved or disapproved the bank, there are some key factors that require checking:

  • Age is the first factor that must be considered, the loan applicant must be of 21 years or above and shouldn’t be any more than 60 or 65 years. Repayment of loan must be completed before the age of 60 to 65 years.
  • It is required that the individual must have 3 years of working experience in the business or private sector. This is imperative since the regular income defines the repayment power of the EMI.
  • The Cibil score is a must to maintain, having a decent Cibil score will help you avail loan quicker. It aids as a deciding factor for sanctioning or rejecting the applications of home loans.

Reason Of Disapproved Home Loan Image

The rate of interest for the home loan against unauthorized property differs depending on the bank. The Unapproved area property varies. The standard home loan is slightly lower in the rate of interest as compared to home loan against unauthorized property.  Rate of interest varies between 10% p.a. to 15% p.a. It is suggested that before you commit to a lender, you must explore. Compare interest rates offered by various financial institutes and banks. There are consultants too, that vow to help you make the right choice. They strive to provide you all the information that you need to make the right decision. Loan taking procedure is stringent and must be done with careful assessment. You have to look into plenty of things before committing to a financial institution.

Loan on Phone is your trusted partner which is reputed and accredited by banks and NBFC’s. The association with high-end clients has helped earn the trust of borrowers. The consultants are qualified experts who are well aware of their work and tasks. The consultants assess the borrower through every stage of loan availing. The loan arrangement will be taken care of on a daily basis.

Loan on Phone takes pride in fulfilling property aspirations of all different people. Whatever your requirement and desire is, we help you in realizing those aspirations with the help of our network of money lenders. We help you assess everything, Loan to value ratio, civil score, the income of borrower and general financial status, thereby providing you fitting loan solution.

How to Fix your Credit to Purchase a Home?

A poor credit history can be a major hindrance in the process of purchasing a home. However, the credit report and adequate credit score plays a crucial role in determining whether the home loan would be granted or rejected. The reason behind this is that the credit report provides particulars about the economic or financial history of the debt payers. Therefore, if the credit report is not good enough or does not look favorable, it can be quite difficult to acquire a home loan.

Credit House Loan Image By Loan On Phone

The home loan consultant in Delhi suggests that before you proceed with the home shopping, you need to analyse the credit report and manage it in a way that it facilitates home loan. An increase in the credit score and upgradation of your credit report might take about few months to even a year. But, it will surely increase the chances of you moving to your dream house.

Low credit score

As you apply for a home loan, you will be charged a much higher interest rate if the credit score is low. In the present scenario, almost every mortgage company now has distinctive programs designed to help those with bad credit receive loans for the purpose of home purchase. One might also be required to pay a higher down payment of cash as a result of low score.  In the low score situation, there exists a probability of loan being repudiated as well.

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Ways to Fix your Credit to Buy a Home

  • If you are working to improve your credit in order to buy a home, it is important that receive a copy of your credit reports from the respective credit reporting agencies. There are only a few creditors who send information to all the agencies. If the mortgage lender pulls your report to check your credit history, they will use the middle score obtained from the different agencies to decide whether or not to qualify you for a loan.
  • You need to collect information on the report and verify that everything is correct such as the name, address etc. You might notice errors on the credit report, which could be responsible for bringing down the credit score. These errors could be due to various reasons which need to be carefully observed and resolved.
  • The improvement of the credit report essentially requires altercation of letters through the certified mail. You may seek the support of a trustworthy credit repair agency in case you cannot invest too much time on it. The expert professionals of such agencies can very well manage the financial repair work of this nature.
  • Once all the disputed aspects are eliminated from the credit report, you can request the credit bureau to mail you the rectified copy.
  • It needs to be noted that there is no easy and instant way to repair the credit report. Therefore, keeping patience with the process is imperative.
  • It is possible to get a pre-approval for a home loan. But, firstly, you must get your credit card report clean, pay off all the unsettled debts and try to enhance your credit score to the extent it is possible. Once you are through all these essential process, you can avail a pre-approval certificate from the mortgage lender or broker.


If each and every concerned aspect is worked out well as you apply for the loan, you need to be cautious about not complicating the other things. Do not invest on any other expensive thing in that period. Since, it can damage the entire loan process. In order to be on the safer side, avoid applying for any other loan in such a situation. Or else, you could lose out on the house you wish to purchase.

About Bad Credit Home Loans – What You Need to Know in 2019?

If your credit is low and you are willing to make a home purchase, perhaps you might be really worried about availing loan. However, there exists a possibility to receive home loan even with a bad credit. Though, a poor credit history can make the entire process slightly difficult. Therefore, it becomes essential to put efforts towards increasing the credit.

How to apply for a home loan with a Bad Credit?

Here mentioned are few tips that can facilitate Home Loan with poor credit:-

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    • A larger down payment- Saving and contributing towards a down payment will be really helpful in paving a path, towards helping you get approval for home loan such as lal dora home loan. It makes your lender acknowledge and trust your ability to contribute money towards the loan. You may save for the down payment by cutting down the insignificant expenses, trying to generate more sources of income etc. You might even seek the help of friends and relatives who are willing to help you with the finances.
    • Speak to your credit counselor- It can be one of the best ways to go about in your endeavor towards availing home loan on lal dora property or any other property. The Credit Counselor’s might review and analyze the particulars of your monetary situations. Accordingly, provide appropriate advice with anything related to the loans especially in the context of bad credit. However, you need to keep in mind that it is not necessary that all the counselors dealing with bad credit are skilled and aware in the same capacity. Therefore, you must be careful in choosing the apt one to guide you in the right direction. There are several counseling agencies specially dealing with such services.
    • Payment of down debt and lower DTI- The lenders will meticulously observe your debt-to-income ratio (DTI) while determining whether the loan should be sanctioned or not. It is calculated with a mathematical procedure which includes dividing the complete debt with the gross monthly income. If your debt-to-income ratio is higher than you need to have, you must take essential steps to improve it. This can be done effectively by increasing your income and paying down on the debts.
    • Emphasize on track record of on-time payments- It is suggested to wait for few months before applying for a mortgage in the events of a record of delay in payments. This would play a vital role in reducing it’s impact. In that gap, you must try to have a record of payments done on time.

Home loan after foreclosure

If there has been a foreclosure, the waiting period might increase further. At times, it can take months or even years to end. However, if the reason behind such foreclosures were severe medical conditions or loss of job and financial crunch as a result of it, certain exceptional rules would be applicable, thus, helping you avail loan.

Is refinancing a Bad Credit Home Loan possible?

Bad Credit Home Loan Image

The main purpose behind refinancing the mortgages could be availing a lower interest rate which can be affected by the bad credit. In such a situation, you must get in touch with the Lender to better your credit; to the extent it is possible.


From the overall analysis, it can be concluded that though getting loans with bad credit might be slightly challenging and a time consuming procedure. However, there are positive chances to avail it.  All you need to do is to search for the right Loan Service Provider Company which would guide and assist you through the entire process, right from applying for the home loan to successfully purchasing your house.