This unique retail loan products offers a customer, a loan by mortgaging an existing house. A person can take a loan for his personal needs which can be for purchase of furniture, trade and business requirement, higher education etc. by mortgaging his home. A person can also take a top up loans, on an existing home loans; while paying for the loans, bank can grant a customer, a top up loans to meet his other needs, this in turn depends on his repaying capacity.
The maximum amount of loan offered by banks generally does not exceed 70% of the market value of the property. A number of factors are also kept in mind while granting top up loans. They are:
Amount of loan outstanding
Current market value of the property
Repayment Capacity
The rate of interest charged is same as the prevailing home loans rates.
Customers can contact the bank representative and apply for a top up loans. They can also fill online forms. A minimal processing fee is charged by banks, which may also be waived off in case of existing customers, or those who have an excellent repayment record.
* Terms and conditions may vary from bank to bank.