{"id":600,"date":"2021-07-11T10:17:40","date_gmt":"2021-07-11T10:17:40","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=600"},"modified":"2022-07-26T11:02:15","modified_gmt":"2022-07-26T11:02:15","slug":"lap-loan-against-property-top-up-loan","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/mortgage-loan\/lap-loan-against-property-top-up-loan\/","title":{"rendered":"(LAP) Loan Against Property Top Up Loan"},"content":{"rendered":"\n
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Mortgage\ntop ups are the additional funds that you can avail of on your existing\nmortgage loan. The mortgage top up loan amount can be utilized for meeting a\nvariety of your personal & professional needs. If you are planning for a\nsmall vacation with your family and have a shortage of money or you are\nplanning to send your child for higher studies abroad and fall short of money<\/strong><\/a>, you can easily top up\nexisting loan and raise the required funds. Similarly, you can also use the top up<\/strong><\/a> amount for refurbishing your house, your home\nrepairs, children’s education, family marriage expenses, cost of medical\ntreatment, and for a variety of other personal uses. Not only for the personal\nuses but the top up loan on mortgage loan can also be utilized to fund your\nbusiness expenses such as marketing cost, advertising, and overhead cost,\nbusiness expansions, office interiors, purchase of new machinery, office\nequipment, stationery, etc. You can also top up mortgage for home improvements,\nfor buying a new house, for constructing a house, for purchasing land, etc.\n(Also read, everything you must know before purchasing a land &\navailing the land loans<\/strong><\/a>)<\/p>\n\n\n\n

Since\nyou already hold a mortgage loan,applying for a top-up loan<\/strong><\/a> is the easiest way to raise\nthe funds required to meet your varied needs rather than applying for any other\nunsecured loans such as a personal\nloan<\/strong><\/a> or business\nloan<\/strong><\/a>. Moreover, because of your existing relationship with the\nlender-Banks\/NBFCs\/HFCs, the lender is sure of your repayments and this\nimproves your chance of getting a mortgage loan top up loan. Top-up approval\nand disbursements are subject to your repayment history. A single bounce in the\nEMI or late payment in the last 12 -18 months reduces your chances of loan\napprovals and may reject your mortgage application even if you have years of\nrelationship with the lender. Lenders follow stringent policies when it comes\nto assessing the lending risk. Hence loyalty with the lender is not the number\nof years of your relationship but holding a clear repayment track record with\nthe lender.  <\/p>\n\n\n\n

Top Up Mortgage Loan Eligibility\nCriteria<\/strong><\/h2>\n\n\n\n

You\ncan apply for a top up mortgage loan with your existing lender or with a new\nlender by opting for a mortgage loan balance transfer<\/strong><\/a> <\/strong>subject to clear mortgage repayment records. Given below are the mortgage\neligibility criteria<\/strong><\/a> for top up loans in India.<\/p>\n\n\n\n

\n Eligible Profile\n <\/td>* Existing mortgage loan borrowers.  
* Existing mortgage borrowers can be salaried, self-employed, self-employed professionals, NRIs<\/strong><\/a>, and a company. * Existing borrowers between 21 years – 70 years.  
* Existing mortgage borrowers having an uninterrupted flow of monthly income.  
* Borrowers having a good CIBIL score<\/strong><\/a> of 750 & above. <\/td><\/tr>
\n LAP\n Maximum Tenure For Top Up Loan\n <\/td>\n Maximum LAP tenure offered for top-up is\n up-to 20 years.\n <\/td><\/tr>
\n Mortgage Top-Up Loan Rate Of Interest\n <\/td>* Top-up rates can be fixed or floating<\/strong><\/a>.  
* Top-ups are offered at the mortgage rates.  
* Top-up interest rates mortgage today range from 7.50% p.a. – 14.50% p.a. <\/td><\/tr>
\n Maximum Top Up Loan Amount\n <\/td>\n 60% of the market value of the property\n subject to the outstanding mortgage amount and income eligibility of the\n borrower. \n <\/td><\/tr>
\n LAP Top Up Processing Fees\n <\/td>\n Top up mortgage loan processing fees are\n up-to 1% of the top up amount + applicable GST.\n <\/td><\/tr>
\n LAP Top Up Prepayment Charges\n <\/td>\n Differs from lender to lenders & ranges\n between 2% – 4% of the outstanding top-up amount.\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Also Read: <\/strong>A List of other charges in availing of a secured loan<\/strong><\/a>.<\/strong><\/p>\n\n\n\n

Preconditions To Apply For A Mortgage\nTop Up Loan<\/strong><\/h2>\n\n\n\n

You\ncan anytime apply for a top-up during the residual tenure of your loan against\nproperty. Following are the vital prerequisites for availing a top-up which you\nmust know. A mortgage top up-loan is subject to:<\/p>\n\n\n\n