Can a person have a personal loan and a home loan simultaneouslyWhen you have an active personal loan already but accumulating housing funds is also a priority. In such a situation, can borrowers opt for a home loan simultaneously with a personal loan? Yes, taking multiple loans at the same time is allowed, but it is up to the borrowers how they manage the repayments of multiple loan accounts whether it is a home loan or a personal loan.
Personal loans balanced with home loans can be a good idea as the personal loan amount can be used to make the initial deposit for your new home whereas the home loan can be utilized for buying the property. When you apply for a personal loan and home loan simultaneously, ensure you have a well-thought financial plan to manage both at the same time.
Here are some factors to take into consideration that will increase the chances of multiple loan approvals at once:
Balanced debt to income ratio:Borrowers should keep a track on their monthly EMIs and other debts, if any. The percentage of liability you hold should not exceed 50% of your monthly income. A higher debt to income ratio will reflect a risky candidate profile and reduce your chances of multiple loan approval.
Hold a Good Credit Score:Borrower’s credit score is assessed before giving a loan approval. This is reflected in the credit report and gives clarity on the repayment ability of the borrower. An excellent credit score is significant while taking approval for a couple of loans simultaneously.
Flexible Personal Loan:A personal loan is an unsecured loan that is collateral-free in most cases. Hence, borrowers can opt for personal loans with flexible repayment terms. A flexible personal loan facility eases off the interest and charges only on the withdrawn amount.
Apply for Joint Loans:Yes, it is possible to apply for two separate loans together with your partner or parent. This increases the ability to repay EMIs on time as a second person’s income is also a part of the loan repayment process.
Plan your Finances:The decision of taking a personal loan and home loan at one time is risky, if you don’t have a backup plan to pay EMIs timely. It is advisable to clear all the debts before applying for additional loans. Also, compare the pros and cons of taking two loans simultaneously, so that you don’t have to face adverse consequences later.
Using the EMI calculator on credit websites or instant loan apps is a good idea to check whether you will be able to handle the instalment burden every month for two loans or not. Once all the terms are checked thoroughly, applying for a home loan and personal loan is easy through online credit portals and instant loan apps.
SimplyCash is a reliable instant loan app for speedy personal loan approval within 24hours. It is a reliable source for personal loans launched by HeroFinCorp and easily available on Google Play Store for download.