Top Up with Balance Transfer on Loan Against Property

• Posted by Aditya Sehgal August 2, 2018 - Filed in Business - #loan against property  #loan against property interest rate  #mortgageloan  - 1,198 views

  Pledging an asset with a lender for availing a loan may seem like an unsafe or risky choice. But a loan against property will not pose any threat if repaid fully within time.

  Moreover, these loans have the highest Loan-to-Value compared to any other loans in India. Longer tenures and a lower Interest Rates on Loan Against Property are some of the best features. For all these benefits, NBFCs require an asset from a customer as collateral.   

  Out of all, loan against property balance transfer is a major benefit that lenders provide. Now, here are a few details about the balance transfer and top up feature of loans against property.

  

   

  Balance Transfer with Loans Against Property:  

   

  The balance transfer allows a customer to move the existing Loan Against Property India from the current to another lender. A situation may arise where a borrower comes across a financial institution which offers a lower rate of interest than his/her current one. Hence, transferring the loan to the new lender will prove more beneficial as it will lower the interest rates.

  In these situations, some NBFCs provide their balance transfer facility. Through this facility, a customer can transfer the outstanding amount to the new lender against a minimal fee. The customer need not pay the already repaid amount to the new lender. He/she will continue the loan with the new financial institution with a lower rate of interest.

   

  Loan Against Property Top Up:

   

  The customer can avail a top up, i.e., an additional amount from the new lender when availing the loan against property balance transfer facility. So, besides the balance transfer, this top up feature is also available to existing customers.       

  Things to remember when availing a balance transfer with top up:

  • The top-up amount may vary with each lender when getting a loan against property balance transfer.

  • Other than the interest rate, compare the processing fees, penal interest, EMI bounce charges, and other fees of the new lender.

  • The new lender requires the same documentation when sanctioning this loan.

  • The loan against property tenure will remain the same as the original one when availing balance transfer facility.     

   

  Documents Required for a Loan Against Property:

   

  The loan against property documents required by NBFCs include –

  1. KYC documents – employee ID card, Aadhaar Card, Passport, Driving License, Voter ID Card.

  2. Address proof – electricity, telephone, gas, water or other utility bills.

  3. Income tax returns for at least the previous year.

  4. Business turnover for the previous year audited by a CA in case self-employed.

  5. Valid property papers.

  Additional Read: 3 Documents You Need to Apply for a Loan Against Property

   

  Eligibility Criteria for Availing a Loan Against Property:   

   

  Customers have to fulfil the following loan against property eligibility criterions –

  1. Salaried individuals need to be between the ages of 33 and 58 years. Self-employed applicants need to be between the ages of 25 and 70 years.

  2. Salaried customers must be working with a public or private enterprise. Self-employed individuals need a business with a constant source of income.

  3. Self-employed applicants need to have a business vintage of minimum three years.  

  All these are the intricacies of loan against property balance transfer and top up. Loans against property are an alternative to a personal loan. One can use these advances for various purposes from wedding to debt consolidation.