Making your financial dreams come true can sometimes require a helping hand. Be it to renovate your home, start a business, plan a lavish wedding, or any other lofty goal, having the requisite funding is essential. When it comes to loans taken for housing purposes, your long term goals can change. Perhaps you took out your loan five years ago, and now you wish to renovate your house. What should you do if the loan amount does not suffice? This is where a top-up loan comes in. What is top up loan? A top-up loan is an additional help on top of a pre-existing loan that is provided by banks and financial institutions which can help you fulfilyour goals through extra financial aid. To be specific, a top-up loan works by being added over and above your home loan amount. Similarly to how you top-up your mobile balance when you run low, banks also offer a top-up facility over your current balance. Most lenders offer a top-up facility. If your lender does not give you the option to top-up your home loan, you can always transfer to a lender that offers this facility.
When it comes to loans, collateral is the most daunting term for people. The question seems very basic, but there always remains a lack of clarity about the various forms of properties and their applicability as collateral for a secured loan. The article you are about to read would bust all the myths and clarify the various types of properties accepted for a collateral and secured business loan. What is meant by – Collateral against Loan? Collateral can be an asset that the borrower pledges to the lender as security against the secured loan. It is a supporting medium for a loan transaction as the lender can liquidate it in case of any default in payment and thus it acts as a security against the amount being lent by the lender. Going with an example, suppose you want to start a new business for which you are planning to take a loan. Your lender would ask you to pledge any collateral like your property or some other kind of security like real estate, bonds, or government securities of the same or higher financial value. Further, once the lender does the assessment and is satisfied with the document, they would easily grant you the loan and fulfil your financial requirements. .