When you already have a personal loan in place but also need to acquire home loan, is it possible to have both at the same time? This blog will concentrate on a thorough response to this question and explain key elements that can improve your chances of receiving simultaneous loan approvals.
Can I Take Home Loan and Personal Loan Together?
Is it possible to have a home loan and a personal loan at the same time when you already have an active personal loan but must also secure financing for a home? Yes, it is the answer. A borrower can combine many loans because there is no limit on the number of loans they can take out at once.
The most significant duty is managing loan repayment for several loan accounts. It is quite risky to take out a personal loan and a home at the same time. A solid financial strategy is essential, and it should include both timely EMI payments and other significant financial obligations.
Additionally, combining a personal loan with a property loan might be highly beneficial. However, a borrower must first prove to the lender that they are creditworthy.
The following are some points to keep in mind when applying for both loans:
Good Credit Score:
When you apply for a loan, the lender will check your credit score to see whether you can afford the repayment of the loan. A borrower’s credit score is influenced by their track record of prompt loan repayment. If your credit score is 700 or better, you can be approved for both loans at once.
Debt to Income Ratio:
If your debt to income ratio is higher, it will make you feel worse. It suggests that you are a high-risk candidate, which could lower your chances of getting both loans authorized at once. Lenders are curious about your income and what percentage is used for debt repayment. Ideally, debt repayment costs shouldn’t exceed 50% of your income (including loan EMIs and other financial obligations).
Apply for a flexible-term personal loan:
In order to manage both debts, look for a personal loan with flexible payback periods. Assist you take out a portion of the whole loan amount based on your needs. Furthermore, you will only be required to pay interest on the amount you actually withdrew. Additionally, loans with variable periods provide prepayment possibilities, which eases the strain of a demanding EMI schedule.
Co-apply to show repayment potential:
This is one way to prove to lenders that you can pay back debts. You may apply together with your partner or parents. Lenders are given significant assurance when many people’s income is shown. You will have a better chance of getting approved for a personal loan and a home loan at the same time.
Conclusion:
As a result, you are permitted to take out personal and mortgage loans at the same time. But you need to have a solid repayment history and credit score. By properly following the above instructions, you can avoid the hassle of simultaneously applying for a personal loan and a home loan.
