Mr. Sachin T has a 20 year housing loan from one of the reputed bank on which monthly repayment has already going on. He also finds himself in urgent need of some additional cash funds to repay his father’s monthly EMI on an existing auto loan because he has retired from his job. Mr. Sachin is evaluating all options-unsecured loans he is not upfront willing to take because of the high interest rates. Secured Loan against property he will not get because the home is a collateral security with another bank on loan account of the home loan he has already taken. Now Loan against security is another option but, the loan which he would get on existing property is not substantial enough to complete all his financial need for another repayments plan. Another option besides, normally the funding tenure is also too short for his requirement. Mr. Sachin is now reached in a fix and he is wondering what to do? He thought a lot and talks to one of his very close friend Mr. Manoj who is a well experienced financial advisor and at that time he suggests to Mr. Sachin to get a top-up loan against the same property which is already with the existing housing loan lender company.
What are a BT + top-up on mortgage loan /housing finance?
Balance transfer is the best option for all borrowers and this is only the program which is always feared to existing lender banks or financial institutional. The power of program is always beneficial for the borrower. A normal top-up amount loan is a secondary refinancing amount facility given to existing housing/ mortgage loan borrowers and whereby an additional good loan amount can be sought in very minimum time over and above the approved housing/property loan amount with outstanding. And all are very much sure about the same and this product is completely aimed at gap fulfilling the finance funding against requirements of the end user or customers on which there are no tough end use restrictions for using the money. So, the loan providing process, by banks, is very fast. You can use the loan amount for buying a new property, even for paying future EMI’s, funding for his/her children’s higher education, spending on brothers’ or sisters’ marriage; lender won’t intervene- where and for what purpose the loan amount is being used.
BT Top- up Product Features
The perfect quantum amount of Top-up Loan: Generally all the Banks in market take into consideration a few fixed parameters before approving or determining the loan amount on paper.
The existing loan re-payment history of the existing applicant is also taken into consideration. Hence, the market eligibility along with income criteria itself requires complete re-payment of EMI history of minimum last one year.
The amount of loan outstanding: Customer just need to go to the existing bank and get the list of documents along with the current loan outstanding letter from the existing bank/ financial company to close the existing loan account and get the balance transfer done from [new]lender. Generally, most of the of PSU banks will ensure that the total outstanding amount along with the foreclosure charges, if any i.e. original housing loan principle, outstanding amount and another eligible top-up amount will not exceed 70% of the current market value of the mortgaged property.
Author box:The author is the foremost financial leader at Deals of loan who put across, the need for one more funding source/loan, very well. Deals of loan is an online loan providing website that offers best deals on Mortgage loan and Personal loan in Pune, India.