Step-up Loan

ALoan comes along with a great deal of pressure of repayment. Whilst its easier to imagine that paying an Equated Monthly Installment (EMI) is harder at the initial stage than afterwards, because of the factors concerning inflation and a potential money-generating unit. With an ever-innovating financial market, banks in India have been providing Set-up Loans, which can be understood as loans having progressive instalments. Such loans attract lower EMIs in the initial years and the amount gradually increases towards the end of the tenure. This scheme particularly favours the working-class aspirants who may find heavy EMIs suffocating at the start.

Top-up Loan

A loan is known as a Top-up Loan when it is taken over and above a pre-existing or pre-sanctioned loan. In the event, where a homebuyer needs an additional amount to either construct or to get a final possession of an already constructed housing unit, banks in India offer top-up loans. Such loans are sanctioned in tandem with the pre-existing conditions and assessment in usual circumstances and attract an interest rate which is generally lower than the interest rate of a personal loan unless otherwise mentioned by the concerned bank.

While both these loans carry a huge concern for the prospective homebuyers, they cater in two very different ways. It is also observed that different banks have different conditions and different schemes of interest, Dwello advises you to carefully consider what might suit your needs in the best possible way.