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The provision of top-ups is a quite popular concept that allows users to add a certain amount of extra capital to their existing loan. Loan seekers opting for home loans in order to fulfill their dream of owning a house can go for top-up loans that are offered by a plethora of banks and financial institutions.
Very often loan seekers are stuck in the dilemma and unable to decide whether they should opt for top-up loans or not. There are numerous benefits of opting for top-up loans which are not clear to loan applicants. In order to make sure you have all the information, you need to make the right decision we have come up with a special blog where we are going to decode the features, benefits, pros, and cons of top-up loans in the UAE.
Before we go ahead and dive deep into the nuances of top-up loans let us first understand what actually are top-up loans and how do they work in real-time?
At times, one needs a companion to fulfill their dreams and ambitions on the trail of life and it feels wonderful when you have somebody by your side to help you achieve what you aspire for. To accomplish everything, you aspire for top-up loans are always by your side. The concept of top-up has become extremely popular amongst loan seekers within the past few years.
Let us consider an exemplary situation to get a better understanding of top-up loans in the UAE.
Suppose you have opted for a home loan of AED 10 lakhs for a period of ten years. After five years the outstanding principal balance on your home loan is equivalent to AED 6 lakhs. Now, at this point in time if you are looking forward to getting your house renovated you can opt for a top-up loan to finance the process quickly instead of opting for an expensive personal loan.
In simple words, a top-up loan is given by a financial institution or a housing company over and above the amount of your home loan. The concept is quite similar to that of mobile companies that offer top-up recharge plans when your mobile prepaid balance is running low. The correct definition of top-up loans is as follows- ‘top-up loan is a facility provided by banks and financial institutions, housing companies and banks that allows debtors to borrow additional amount over and above the initial loan amount’.
There are several features of top-up loans that make it the ideal choice for a large number of loan seekers in the UAE. In this section of the blog, we will be shedding light on the salient features of top-up loans.
A common question that would have crossed your mind after reading this blog would probably be, what are the benefits of top loans? Do I get something extra if I apply for a top-up over and above my home loan?
To bust all the myths and clear your queries in this section we will decode the major benefits of top-up loans in the UAE, here’s a quick rundown-
The following are the eligibility criteria of top-up loans in the UAE-
In a Nutshell
The majority of financial institutions offer top-up loans these days. Before you go ahead and opt for a creditor do assess your goals in the long-term to make the maximum out of the loan.