A personal loan is a collateral-free loan that helps you meet financial needs with the loan amount of your choice. Meanwhile, a home loan top-up is extra financing added to an existing home loan only select people qualify for. Here are some key considerations in determining which one is better.
Key Considerations in Determining which one is Better:
- Interest Rates
Since top-up loans are secured, with your house as collateral, the interest rates are relatively lower. An unsecured, easy personal loan puts the lender at a higher risk. Therefore, personal loans have higher interest rates.
- Tax Benefits
Tax benefits through top-up loans are only viable if you use the funds for a few specific reasons. As for personal loans, regardless of the purpose of funds, borrowers are entitled to a tax benefit.
- Tenure
Top-up loans have a higher repayment tenure than personal loans. Confused about the tenure of your personal loan? The contact number of your NBFC will be available on their website – reach out and learn more about the repayment tenure range they offer.
- Documentation
For a top-up loan, the documentation required is much less as the institution already has the documents from your home loan. However, the borrower needs to submit every document and form from scratch for a personal loan.
Fullerton India personal and top-up loans come with their benefits. Only you can determine what is best for you. Luckily, with our competitive interest rates and repayment flexibility, the financial burden stays off you regardless of the choice you make!
Additional Read: Here is how a Personal Loan Online Better Than offline process
