Sameer Bhasin is a 30 something professional photographer living in Mumbai. He has recently done up his studio in which he has spent a bulk of his savings. He now has an international client who requires him to purchase a particular camera and some high end camera equipment without which he may stand to lose a prestigious project. Since he already has a mortgage running he is wary of taking a personal loan which works out to be very expensive. Bhasin happened to discuss this problem with a banker friend of his. His friend suggested that Sameer avail of a top up loan on his home loan, which may just be the perfect solution for Sameer!
How does a top up loan work and who can avail it?
Pros of taking a top up loan
The cons of taking a top up loan
If there is a sudden need for funds such as marriage, the education of your child or buying furniture or equipment for your business (as in the case of Sameer) you can consider a top up loan, but only after you have clearly examined the pros and cons of the same.