There might be times when you already have an active home loan but are in a dire need for finance. Some lenders allow you to apply for a loan against property in such a situation but at a higher interest rate. Here are some aspects of this process.
You can keep the same property as collateral on which you are serving the home loan and getting the benefits of mortgage loan. But as mentioned above, the interest rate in such cases will be higher than the normal interest rate.
You can apply for a top up loan on your ongoing home loan. Certain lenders offer a higher amount as the top up loan. All the benefits of this loan remain the same as the benefits of mortgage loan. You can even use this funding to buy a new house. Moreover, you can opt for a home loan balance transfer.
You can also use the same house as collateral after repaying the first home loan. Lenders even allow you to foreclose the ongoing loan and apply for the second loan.
It is very easy to apply for the loan against property online. Go to the lender’s portal and fill the online form, after which the representative will get in touch with you for further the procedures.