When looking for adequate funding to meet your housing needs, you may ask: Can I take a home loan after a personal loan? The answer is yes, you can. There is no cap on the number of loans you can avail of simultaneously.
Obtaining a personal loan in tandem with a home loan can be helpful. You can use the personal loan to make the 20% down payment towards your home or spruce up your house with modern interiors, while using the home loan to buy the property.
If you opt for this duo, remember that the key to applying for two loans simultaneously is proving to the lender that you have the financial muscle to tackle both. To secure ample funding, consider these four factors when taking a personal and home loan simultaneously.
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Ensure that your credit score is healthy
Before approving your loan, lenders look into your credit report and check your credit score to ascertain if you will be diligent with repayments. Around 79% of loans approved in the recent past were granted to individuals with a credit score of 750 and above. The 3-digit number reflects your credit handling capabilities and repayment history. While keeping it high is vital for gaining any form of credit, an outstanding score is fundamental when you take two loans simultaneously and when one is unsecured.
Additional Read: How to get a loan without a job
Keep your debt-to-income ratio within bounds
Apart from evaluating your credit history, lenders want to see how well your current income will support EMI payments, and your debt-to-income ratio best depicts this. Ideally, the amount of debt you service per month, including home and personal loan EMIs and any other obligation that you have, should not cross 50% of your monthly income. This is because lenders know that you need the remaining 50% to take care of living expenses. A high debt-to-income ratio classifies you as a high-risk candidate, reducing your chances of getting approval for both loans.
Apply jointly to show enhanced repayment capabilities
One way to demonstrate stronger repayment capabilities is to apply jointly with your spouse or parent. When you show proof of more than one person’s income, lenders are surer of your ability to make timely payments. In this manner, portraying full repayment potential increases your chance of obtaining a personal and home loan together.
Additional Read: Top risks when availing multiple loans
Look for a personal loan with flexible terms
To manage two loans at the same time effectively, look for a personal loan that comes with versatile repayment terms. For example, when you opt for the Bajaj Finserv Personal Loan, you get funding of up to Rs. 25 lakh at economical interest rates for a flexible 12- to 60-month tenor. Further, the flexi Loan facility lets you borrow money from your sanction in parts, as per your needs. Each time you borrow money, you pay interest only on the amount withdrawn. This makes it easy for you to cater to unexpected expenses economically. Moreover, you also have the option to prepay and redraw funds should you need them at a later date.
To expedite loan approval, also remember to check your pre-approved personal loan offer from Bajaj Finserv. Doing so gives you access to customised deals and finance at a super-fast speed.
Additional Read: What is “100% digital lending” by Bajaj Finserv?
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