Are you buying a new home? Need to apply for a home loan? Know all about different types of home loan schemes out there.
When it comes to applying for a home loan, top-up loan and loan against property are the most common loan options out there. When it comes to a loan against property, it is a type of mortgage loan that allows the borrowers to avail a huge amount of loan against the interest rates of the property at nominal rates.
In case of a loan against property, you can get a substantial sum. For example, the Bajaj Finserv Loan Against Property scheme provides financial assistance to around 3.5 Crores INR. However, for the top-up loans, the amount would differ in the overall value.
As the given loan is secured, there is no need for the lenders to worry about the default in the repayment of the loan amount. At the same time, a top-up loan is known to serve as the extension of the existing home loan scheme that you have. Once you have made the payments of the EMI amount of the particular home loan to some extent, the lender can allow you to borrow some additional top-up amount of the home loan.
When it comes to the loan against property, the collateral is usually any commercial or residential property. On the other hand, in case of a top-up home loan, the collateral is doubling the security with no additional requirement of the collateral.