There are situations in life that may push to opt for some more finance when you are already servicing a loan. Many times, there may be situations when you may have an active home loan, and you may wish to apply for a loan against property.
The reason for people to apply for the mortgage loan while having a home loan is that they can use the fund for purposes as per their needs.
But, is it practically possible that you can apply for a loan against property with an active loan? Let this post shed some insights on it as you read on! Generally, when you already have a housing finance account, you can’t apply for another loan while keeping the home as the collateral.
Nonetheless, there are ways when you can actually apply for a loan against property while still repaying your current home loan. Let’s have a look at some aspects regarding the same.
- Some leading lenders such as non-banking finance companies (NBFCs) provide you with the opportunity to apply for a second loan. You can do that by keeping the same property as the collateral. On behalf of the same house on which you are serving a home loan, taking a loan against property is possible. However, if a lender allows you to do that, you may need to manage a higher than the normal interest rate.
- You may apply for a top up loan on your first or ongoing home loan. The lender offering you housing finance should also offer the top up loan. You can also use the same amount to fund the purchase of a new home. What’s more, you also have the option to opt for the home loan balance transfer. You should do that to a known non-banking finance company (NBFC). NBFCs are known for offering a higher amount as the top up loan which can work in your favour.
- You can also wait until you repay the first home loan. Once you are done doing that, you can apply for the next secured loan using the same collateral.
- You also have the alternative of foreclosing the first home loan and then subscribe to the next or second loan.
Now, it is up to you to use any of the mentioned methods to avail a second loan to buy your next or another dream home. You can also consult a known financial expert to help you out.
Applying for the loan against property India facility is easier. You can fill the online form at the lender’s website to process your application. If everything is fine after the document verification process, you may get the loan approval at the earliest.
You can submit your basic details such as name and mobile number to check out your pre-approved loan offers right away with instant loan against property application. Bajaj Finserv offers pre-approved deals on loan against property, home loans, business loans, personal loans and much more. Such offers aim to simplify the overall loan application and processing steps to help save your time and efforts.