In this a borrower can apply for a additional loan on a existing loan with a same bank . Usually this loan is to meet your personal expenses like family holiday , child education , marriage . This loan plus already running existing housing loan cannot exceed 80% of market value of property . For example if your outstanding loan amount is 50 lacs and market value of the proerty is 80 lacs, than the max top up which you can get is 14 lacs .To get a top up , your existing loan should be atleast 6 months old .
- Max funding - 80% of market value minus existing loan outstanding
- Tenure – 1 to 15 years
- Interest rate – As applicable. Interest rate keeps on changing.
- Age limit - For salaried max 65 years or retirement age ,whichever is earlier and 70 years for self employed.
- Loan foreclosure penalty - Means paying off the complete loan at one go. Most bank charges 2 to 3% of principal outstanding
- No income tax benefit is there
- part payment - means paying some part of loan.Most bank charges no penalty
- Co-applicant - Most of the banks ask for co-applicant .
Co-applicant in case of
Individual - spouse,parents
Director - spouse , parents , pvt ltd company , other directors .
Partner - spouse , parents , partners .
Co-owners of property need to be co-applicants in loan .
2 documents are required for a loan to get disburse
- Sanction letter: - Loan sanctioning is based on the financial documents,personal documents and past credit history of the borrower. Based on the information provided banks calculates the loan eligibility and decides on the loan amount.This is the seperate loan so again loan sanctionning is required.
Documents required for loan sanctionning are :-
Documents in case of salaried
Documents in case of sole proprietor (proprietorship)
Documents in case of partner (partnership)
Documents in case of director (private limited company)
2.) Technical report : - In this approved map by municipal authority is required .On map provided , physical verification of the property happens .While verification certain things are checked like area of property , usage of property(Residential or commercial) . Based on this report is made .
If both documents are approved by the bank , than disbursement documents are signed and cheaque is made in name of borrower .
This complete process takes 15 to 18 days , subject to complete documents are provided by borrower .