|Author: Kailash Kumar 10 Jun 2016 Member Level: Platinum Points : 3 (Rs 3) Voting Score: 0|
I think in such cases the banks process a new loan package and dependig on the repayment track record of the existing home loan, transfer the balance loan amount to the new loan package. The banks may be requiring in such cases the standard documents like application form, KYC documents, income documents, bank statements and most important the repayment track record of existing loan for last 18 months and previous loan details. It would be best for the author to walk in the branch from where the loan was taken and talk to the bank official concerned. Only the individual track record of the repayment of previous loan will finally decide the case. Any loan cannot be claimed as a matter of right.
|Author: Mahesh 12 Jun 2016 Member Level: Gold Points : 2 (Rs 2) Voting Score: 0|
The answer to this question is : it depends.
The case for top up loan from same bank would require you to show track record of the loan payment. Also your ability to clear both loans. Most of the time second loan is often offered on the basis of the background check with existing loan's status.
You have to atleast show 2 years consistent payback record. And this way you can enable another top up loan to the existing. Banks do give you choice to offer top up loan on existing loan or you can choose another loan with different repayment cycles. It depends on you and bank for that mutual agreement.
|Author: Venkiteswaran. 16 Jun 2016 Member Level: Diamond Points : 4 (Rs 4) Voting Score: 0|
What you think as top-up-loan may be known as additional loan, second loan or enhancement of limit in bank's language. It depends on the purpose for which you want the loan amount.
Let us take the various situations.
1. If it is for additional construction, say additional floor or taking up an extra room which results in increase of the constructed area, then it may be an additional home loan(you may say top-up-loan). If you get a sanction from the authorities, and your till date payment record and your present disposable income also permits further repayment amount, then the bank may consider the loan under its terms and conditions and policy guidelines. It may be considered under home loan itself.
2. You are not going for any construction, but there needs some repair for the existing construction, or panting etc and the conditions of disposable extra income is satisfied, then the bank may consider it. Some banks may not consider it as housing loan, but a demand loan with separate terms of interest and repayment.
3. If the amount is needed for some miscellaneous purposes, then the loan may be considered under consumption loan or personal loan and will entail higher rate of interest and shorter repayment period.
For all this the bank may add the existing security to cover the new loan also. Some banks may consider further loan to the extent of amount already repaid. This is only in exceptional cases as per bank's discretion and experience with the borrower.
The first step is to have a personal discussion with the bank officials. Then you need to submit a formal application and add the latest income proof, latest statement of the existing loans and copy of the bank pas through which your income and transactions are routed. These are the minimum needed. Bank may ask or not ask further papers as per their assessment. You may have to remit the processing charges and other fees as applicable. If they want to take the house as security then they may need the latest tax paid receipt on it and the Nil encumbrance till date.
Then once sanctioned you may have to execute the loan documents which bank will provide you.
|Author: Pravat Kumar Das 16 Jun 2016 Member Level: Gold Points : 2 (Rs 2) Voting Score: 0|
All banks provide top up loan for existing loan account holder ( if they full fill the criteria like repaying on time, having good salary credited or good income tax return fr business holders).
As you have taken a Housing loan, you can ask bank for a renovation loan, instead of asking for a top -up on existing loan.
Visit your branch, and make clear your requirements to the branch manager.
He will help you better.
Suppose you want to add some more furniture, or want to change colour, or want to add some more new construction or modification, then take a renovation loan, and for that you do not need to submit further documents,Branch manager will sanction depending upon your further repaying capacity .