Are you in need of urgent funds? Do you already have a mortgage loan? If yes, then you don’t have to apply for a second loan. Because applying for another loan will only mean additional paperwork, waiting for approval and other mandatory checks.
So, what is the way out? Apply for a top-up loan on your existing property mortgage loan amount. A top-up loan is an additional credit you can avail of over and above an existing loan.
This article will discuss what top-up loans are and how to make an informed decision on whether to top up your existing mortgage loan.
What is a top-up on a property mortgage loan?
A mortgage loan is a secured loan that enables borrowers to obtain funds by pledging an immovable asset, such as a residential or commercial property, as collateral to the lender. Since it is a secured loan, it generally has lower interest rates, attracting more loan borrowers.
On the other hand, a top-up on a property mortgage loan is an extra amount you can borrow on top of your existing mortgage loan. This facility allows you to access additional funds without the hassle of starting the loan process from scratch.
The maximum amount you can obtain as a top-up loan is Rs 3 crores, with a maximum loan tenure of up to 15 years. However, remember that the loan amount you can borrow depends on factors like the stake in your assets and your ability to write off the top-up loan against a property.
Advantages of top-up loan against property over another loan application
#1. Easier loan approvals
The approval process is typically straightforward when seeking a top-up loan from your current loan provider. This is because your creditworthiness has already been established and verified, making you eligible for a top-up loan.
#2 High loan amount
One of the significant benefits of accessing a top-up loan is that you can obtain a high loan amount. If you apply for a top-up loan, you can borrow 100% or more of your current loan amount on top of your existing loan.
#3. No requirement for additional collateral
Since you have already pledged your property as collateral for your mortgage loan and it is an add-on to your existing loan, you don’t have to submit additional collateral.
#4. Reliable financial backup
During times of financial need, when the current mortgage loan is insufficient, a top-up loan can provide valuable additional support. The top-up loan is a convenient solution that helps you avoid the hassle of applying for a new loan while offering competitive interest rates and minimal documentation requirements.
#5. More time to repay your loan amount
Loan tenures of property mortgage loans are generally higher than other unsecured loans. Thus, topping up your existing loan can extend your loan duration, giving you more time to repay the loan.
Steps to Top up your property mortgage loan
Applying for a top-up loan is a straightforward and hassle-free process. Just follow the steps given below:
#1. Contact your lender to confirm if they offer a top-up loan.
#2. If your lender does not provide a top-up loan, consider transferring your loan to another lender through a balance transfer.
#3. Once you decide on a lender, fill out the online application form.
#4. Submit the required documents.
#5. Wait for approval.
After the lender approves your top-up loan application, the top-up loan amount will be disbursed to your bank account.
How to know when to top up your property mortgage loan?
Sometimes unexpected expenses, like medical emergencies, can arise, and you may need more money than your current mortgage loan provides. In such cases, you may want to consider getting a top-up loan on your mortgage. Apart from that, you can use a top-up loan to cover education or home refurbishment expenses.
In addition to financing other expenses, you can use a top-up loan to pay off unsecured debts with high-interest rates. Consolidating these debts with a top-up on your property mortgage loan can help you save money in the long run.
Choosing the best lender for a top-up on a property mortgage loan
Now that you know all the nits and bits of mortgage loans and how to top up property mortgage loans, you may wonder which financial advisor and lender you can trust. Look no further than Tata Capital.
We offer top-up loans with competitive interest rates and minimal documentation. You can borrow up to 100% or more of your current loan amount. With our hassle-free top-up loans, you can access funds quickly and use them for personal needs such as medical emergencies, home renovations, and more.
So what are you waiting for? Visit our website or contact us over the telephone to apply for a top-up on a property mortgage loan today!