This is another type of home loan product in which the financial institutes offer the finance to a customer so that they can build a home in a selected area or a plot according to their choice. The main feature of this loan is that loan is disbursed in installments as per the customer’s requirements. Additionally, save extra by paying interest only on the funds used instead of the total amount.
This type of home loan is used when the buyer is directly purchasing a new property from the seller. Both floating rate and fixed rates are provided on this type of loan.
This loan is provided only on the running home loans. The rate of interest on this loan is lower as compared to a personal loan and mortgage loan. In this important point is that home loan top-up is sanctioned only when existing home loan has a regular repayment schedule for 2 years. The main feature of this loan is less documentation and quick disbursement. The loan amount of this loan can be used for any purpose like in construction, renovation, wedding, vacation trip, etc.