Pay for home loan down payment with Personal Loan

Cover your brokerage, stamp duty or home loan down payment with a personal loan.
Pay for home loan down payment with Personal Loan
5 min read
28 Sep 2022

Getting funds together for buying a home is always a challenge. The house you end up liking always costs more than what you have the money for. This is a time when you need access to funds for a relatively shorter duration to make up for the difference between the sanctioned home loan and the cost of the house.

We have three variants of personal loan that you can pick from.

Flexi Term loan

Imagine you take a loan of Rs. 5 lakh for a duration of 24 months. You pay the normal equivalent monthly instalment for the first six months (EMI). You should have paid back roughly Rs. 50,000 by this point.

You suddenly discover that you need Rs. 50,000 more. All you have to do is withdraw Rs. 50,000 from your Flexi Term loan account by visiting our customer portal - My Account.

You received your Rs. 1 lakh bonus three months later and would wish to make a partial repayment of your Flexi Term loan. Once more, all you have to do is visit My Account and make a partial repayment of your Flexi Term loan.

Your interest has been automatically adjusted throughout, and you are only paying interest on the amount that is due. Both principle and adjusted interest are included in your EMI.

Flexi Hybrid loan

This personal loan variant operates precisely like the Flexi Term loan. The only difference is that, for the initial period of the loan that could vary depending on the tenure of the loan, your EMI will only consist of the applicable interest. For the remaining period, the EMI will consist of the interest and principal components.

Term loan

This personal loan is comparable to the others. You take out a loan for a specific sum of money, which is then divided into equal monthly payments that include both the principal and any relevant interest.
For paying off your term loan before the end of the loan period, there is a cost.

You can use this personal loan to cover for one or more of the following expenses:

1. Home loan down payment
Your home loan covers about 80% of the cost of the property. For an apartment of Rs. 70 lakh, you will need to make a down payment of Rs. 14 lakh. Besides drawing from your savings, you can opt for a Flexi Hybrid loan of Rs. 5 lakh for two years. At the end of the appraisal cycle, you have the flexibility to prepay a large portion of that through your incentives or bonus. This is just an illustration, there are multiple scenarios that you can explore.

2. Paying the broker
Your real estate agent is likely to charge you between 1%-1.5% of the total cost of the property. For a Rs. 70 lakh apartment, this will come to approximately Rs. 1 lakh. You can go for a term loan of Rs. 1 lakh for two years and pay back in 24 instalments.

3. Quick repairs or makeover
By now you are already stretched but you may need to have the bare minimums like wardrobes in the bedroom and a functional kitchen. These could cost you a couple of lakhs. You can go for any of our three personal loan variants and apply online. It takes less than five minutes to get approval. And the money will be in your bank account in less than 24 hours in most cases.

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