Can You Take A Personal Loan And Home Loan Simultaneously?

4 September, 2024

Synopsis

• To get both loans together you must meet the banks’ eligibility criteria involving credit score and income.

• Assess your financial health before taking both loans and keep an emergency fund aside for contingencies.
  
  

Balancing multiple financial goals can be challenging, especially when considering significant investments like buying a home while also managing personal expenses. Have you wondered ‘Can I take a Home Loan and Personal Loan together to ease this constraint?’ Understanding its feasibility and benefits is important.

This article explains how you can navigate taking both loans at once, ensuring financial stability and meeting your diverse needs effectively.

What Are Home Loans And Personal Loans?

Let us first understand these two types of loans:

• Home Loans
  A Home Loan is a secured loan taken to purchase a house or a property. The property itself serves as collateral for the loan, which typically leads to lower interest rates levied by lenders. Home Loans also come with longer repayment tenures, often ranging from 10 to 30 years, making the equated monthly instalment (EMIs) more manageable.
  
  

• Personal Loans
  A Personal Loan, offered by banks and financial institutions, is unsecured and relies on your creditworthiness and income for approval. It can be used for various purposes including medical emergencies, education, debt consolidation, etc.
  
  

Feasibility of Taking A Home Loan And Personal Loan Simultaneously

Following factors will affect your chances of taking both loans together:

• Credit Score
  A good credit score, typically above 750, is essential for favourable interest rate on all loans. A good score reflects responsible credit management and increases your chances of loan approval.
  
  

• Income and Employment
  A stable and sufficient income is essential. Lenders prefer a debt-to-income (DTI) ratio of 40-50%. Keeping your DTI within limits improves approval chances for both loans.
  
  

• Other Specific Criteria
  While the criteria for Personal Loans are straightforward, Home Loan approval also depends on the property you choose. The lender evaluates your chosen property before approving the secured loan.
  
  

Benefits of Taking Home and Personal Loans

Following are the benefits of applying for Home and Personal loans, whether simultaneously or individually:

• Taking both loans allows you to meet different financial needs. You can buy a home while also managing your personal and urgent expenses.

• Home Loans in India come with annual tax benefits worth ₹150,000 under Sections 80C and ₹200,000 under 24B of the Income Tax Act. You can leverage these to reduce your tax outgo.

• Managing different loans entails managing different types of credits. These loans, plus your timely credit card payments, show lenders your capacity to handle a healthy credit mix.
  
  

Get Xpress Personal Loan And Home Loan From HDFC Bank With Ease

When it comes to Loans, HDFC Bank provides several options to help you get the necessary funding. We offer instant, online and paperless Personal Loans, as well as Home Loans that you can apply directly through our website. Our simplified online loan application facilities and swift approval and disbursal processes makes us a favourite among our customers. You can visit the HDFC Bank website to view our extensive list of loan products.

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank’s requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.