Can I Take A Personal Loan and Home Loan Simultaneously?

Explore the possibility of taking out both a personal loan and a home loan simultaneously. Learn more with our expert guide here!

A home loan is ideal for purchasing a home. You can own the home of your dreams while keeping your savings intact by taking out a home loan. Homebuyers, on the other hand, frequently exceed their budgets when purchasing a home. Unexpected expenses can range from down payments to renovations.

Fortunately, you do not need to use your savings. Taking out a personal loan online is another option for funding! Personal loans can cover all unexpected costs associated with a home purchase.

Can you, however, get a personal loan and a mortgage loan at the same time? Yes, technically. There is no maximum number of loans you can take out. However, there are some things you should think about before applying for a second loan.

When Should One Consider Personal Loans and Home Loans Together?

Down payments on a home can be as much as 20% of the purchase price. Furthermore, various charges may exceed the property value by 5-7%, which a mortgage cannot cover. Given your financial situation, it may be difficult to make a lump sum payment. A personal loan can help you pay for your down payment on a house.

How Can You Take A Personal Loan and A Home Loan Together?

• 1. Maintain a good credit score

  Your credit score reflects how regularly you repay your loans. A credit score of 700 or higher will make loan applications easier and put you in good standing with lenders. As a result, if you already have a home loan but need another loan for personal reasons, you'll need a stellar credit report to get another loan The best way to improve your credit score is to pay your EMIs and credit card bills on time. It can also assist you in obtaining an affordable interest rate on a personal loan.



• 2. Keep your debt-to-income ratio within reasonable limits.

  A lender will also look at your current income and credit history to determine your ability to pay the home loan EMIs. A lender may refuse to extend you another loan if you already have one and are unable to pay another EMI. As a result, spending less than 50% of your monthly salary on loan servicing is ideal. A higher debt-to-income ratio means you have less financial freedom.



• 3. Make a Plan for Your Second Loan

  Even if your DTI ratio and credit score are both favourable, a second loan can be a significant financial burden if you already have a home loan. As a result, before taking out two loans, you should consider your financial obligations.



• 4. Enhance Repayment Capabilities By Applying With A Co-Applicant

  Applying jointly with your spouse or parent is one way to demonstrate stronger repayment capabilities. Lenders are more confident that you can make payments on time if you demonstrate more than one person's income. By showing full repayment potential, you are more likely to qualify for a personal and home loan together.