Often, when we wish to fulfil several of our dreams together, we need to take up external financial support from lending institutions. For example, you may want to buy a new house for your family, but also support your daughter’s education abroad. In such cases, you might feel the need to take up more than one loan, a home loan and a personal loan, together.

Here is when the question arises: Can I take a home loan and a personal loan together?

Can One Consider Opting For A Personal Loan And A Home Loan Together?

The crux of the answer is positive. Yes, you can take up a personal loan and a home loan together. There is no limit on how many loans you can avail of at the same point in time. Despite the financial burden that you might anticipate, this system of multiple loans can actually work well.

Sometimes, people opt for a personal loan along with a home loan to deal with the same task at hand. When you apply for housing loan, you can only ask for up to 90% of the property’s market value as a loan. These are the rules set down by the Reserve Bank of India for all lending institutions alike. For example, if you wish to purchase a residential property that costs INR 3 crores, then you can avail of a home loan of a maximum amount of INR 2.7 crores and have to arrange for the remaining INR 30 lakhs, which is the down payment, by yourself. This amount can be burdensome for many families. Thus, to manage these funds, you can opt for a personal loan now! This is called the down payment amount.

Can I Take A Home Loan After A Personal Loan?

Yes, you can take up a home loan after you have already borrowed a personal loan. You can always plan for a new home renovation project, a new home acquisition milestone, or a new construction plan after already having taken up a personal loan for unrelated reasons like a marriage at home or a family vacation to the hills.

Things To Keep In Mind While Taking A Personal And Home Loan Together

One major thing to keep in mind that can affect you taking up a personal and home loan together can be the consideration of a top-up loan. If you already have taken out a home loan, then opt for a top-up loan instead of a personal loan to cover all the remaining expenses. This way, you can avail of tax benefits as well as benefit from lower interest rates.

Can I get a home loan if I have a personal loan?

Yes, if you keep in mind the following:

Credit Score

Your credit score must be strong enough for the lender to trust that you can repay both the loans within the given tenure of time. Your CIBIL score is a direct indication of how financially stable you are. Lenders consider your income, repayment history, borrowing capacity, and your current debt liability.

Lenders prefer a credit score of at least 700. This shows that the borrower is capable enough of producing regular funds to pay his/her EMIs on time and be consistent with loan repayment.

Debt-To-Income Ratio

Be mindful of the total debt you are carrying as opposed to the income you generate. Lending firms will always take a look at your debt-to-income ratio, which is the total summation of the debt you are obliged to pay versus your income. If this ratio is too high, then it might imply that you will find it difficult to repay your debts, given the inflow-to-outflow fraction of money into your account.

Ideally, this ratio must be less than 50% for you to gain easy approval on multiple loans.

Eligibility Criteria To Apply For A Home Loan

The eligibility criteria to apply for a home loan is:

• You must be a Resident Indian.
• Age must be between 21 years and 65 years.
• CIBIL score must be at least 700.
• Minimum salary must be INR 1.2 lakhs per year for salaried employees.
• Self-employed persons must be doctors, CAs, or architects.

Conclusion

If you’re looking to take up a personal loan, home loan, or top-up loan, you can turn to SMFG Grihashakti. With affordable interest rates, reasonable repayment tenures, and 0 hidden charges throughout the processing, you can be assured of the best financial support.

Check out SMFG Grihashakti’s online home loan eligibility calculator to find out if you qualify to apply. Once done, you can submit your application through a 100% online process and upload the required documents. You can also benefit from the online home loan EMI calculator to set your monthly budget. Let nothing stop you from achieving your dreams!