How many home loans can you have?

You can have as many home loans in India as you need, as there is no law barring you from servicing only one home loan at a time. If you want to purchase, say, 5 properties at once, you can take 5 different home loans from 5 different lenders. However, you will get a loan only after your lender thoroughly assesses your home loan eligibility, and in particular - your repayment capacity.

The CIBIL score for home loan applications is generally around 685 or higher, and to get more than one home loan, you should have an excellent score. Your debt-to-income ratio must also be reasonable. If you have a clear track record and sufficient income, you could get approval for multiple home loans. You can claim tax benefits on loans once you start servicing your home loans.

Can I take two home loans?

Yes, it is possible to take two home loans, subject to certain conditions and eligibility criteria. However, there are a few important factors to consider:

  1. Eligibility: Lenders assess your eligibility for a home loan based on your income, credit score, existing liabilities, and repayment capacity. If you meet the eligibility criteria of both lenders and can demonstrate the ability to manage two home loan EMIs simultaneously, you may be approved for two home loans.
  2. Income and repayment capacity: Your total debt obligations, including the EMIs of both home loans, should not significantly strain your monthly income. Lenders typically consider your debt-to-income ratio to ensure that you can comfortably manage your financial obligations.
  3. Loan-to-Value ratio: Lenders usually provide loans up to a certain percentage of the property's value, known as the loan-to-value (LTV) ratio. If you are already utilizing a high percentage of the LTV on your first home loan, it might affect your chances of getting a second home loan.
  4. Credit score: Your credit score plays a crucial role in loan approval. A good credit score enhances your chances of getting approved for multiple loans.
  5. Property under construction: If you're taking a loan for a property under construction, lenders might be more cautious about approving a second loan until the first property is closer to completion.
  6. Income tax implications: Interest paid on home loans is eligible for tax benefits under Sections 24(b) and 80C of the Income Tax Act. However, tax benefits might differ for a second home loan, particularly if the second property is not self-occupied.
  7. Loan amount and tenure: The loan amount you're eligible for on the second home loan might be affected by the existing loan obligations and your repayment capacity. Lenders might also consider the overall tenure of both loans.
  8. Lender policies: Different lenders might have varying policies regarding granting multiple home loans to the same individual. Some lenders might be more conservative in providing multiple loans, while others might be more accommodating.

It is important to carefully assess your financial situation and consult with financial advisors or loan professionals before deciding to take on multiple home loans. Consider factors such as your long-term financial goals, ability to manage multiple EMIs, and the potential tax implications. It is also advisable to review the terms and conditions of both home loan agreements to understand your obligations and responsibilities.

Also read: How much home loan can get on salary?