Can I take home loan after personal loan?

Loans are required at any time. Not everyone is born with a silver spoon in their mouth. So, to fulfil our needs we need loans. At times, getting a home loan or a personal loan is a more convenient option even if you have enough resources! Loans help us to avail of the tax exemptions. But can I take home loan after personal loan if required? I will share some pointers regarding ‘can I take personal loan after home loan sanction?’

Can I take personal loan after home loan?

Well, the answer is yes! In fact, obtaining a personal loan with a home loan can be helpful. With the help of a personal loan, you can make a 20% down payment towards home interiors and renovate your home. But to get this duo you have to consider a few factors such as:

• Ensure a healthy credit score

Before approving the loans lenders will always check your credit report. If your credit score is 750 or above you can obtain loans without any hassle. Because the three-digit number reflects your repayment history and handling capabilities it is very essential to maintain the credit score especially when you are taking two loans simultaneously.

• Check your debt-to-income ratio

Apart from credit history lenders would also check how you would repay your loans. Therefore, you need to check your debt-to-income ratio as well. If you take both a personal loan and a home loan the debt should not cross 50% of your income. You will need the other 50% of the remaining income for other living expenses so you need to maintain this ratio. Since a high debt-to-income ratio classifies a high-risk candidate, the bank reduces the chances of approving both loans.

• Apply for Joint Loans

The easiest way to secure both loans at the same time is to take a joint loan with your parents or spouse. When you provide income proof of both persons, lenders become sure of your ability to repay the loan on time. 

• Go for a personal loan with flexible terms

Look for options such as flexible tenure, competitive interest rates, flexible payment options and other options that can benefit you in case you are applying for both personal loan and home loan.

I hope my write-up solves your query regarding ‘Can I take home loan after personal loan?’

Read more: