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 loan, on an
existing home loan; while paying for the loan, bank can grant a
customer, a top up loan to meet his other needs, this in turn depends on
his repaying capacity.
Maximum Loan offered by Banks for Top up Loan:
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
Interest Charged by Bank on Top up Loan:
The rate of interest
charged is same as the prevailing home loan rates.
Process Of Top up Loan Application:
Customers can contact the
bank representative and apply for a top up loan. 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.
List of Leading Banks Offering Top up Loans:
