Know How to Get Personal Loan and Home Loan Simultaneously

Getting a personal loan and a home loan at the same time is possible to manage your requirements. Whether you want to purchase your dream home or renovate your existing one, you can do it easily. All you have to do is get a personal loan after a home loan to extend your budget. 

Now that you have an answer to your question, ‘Can I take a personal loan after a home loan,’ here are a few easy-to-follow strategies you can follow.

Tips to Get a Personal Loan and a Home Loan Together

Follow these ways and get a personal loan and a home loan simultaneously:

Maintain a High Credit Score

The reason why lenders hesitate to approve your second loan application is due to the risk of default. However, a sure-shot way to tackle this is by maintaining an excellent credit score. Wondering what a credit score is? Simply put, it’s a 3-digit numerical summary of your credit behaviour. 

A higher score indicates creditworthiness and implies that you are a responsible borrower. This allows you to get hassle-free approval. Your score is calculated based on the following parameters:

• Your past repayment behaviour
• Your existing and past credit accounts
• Inquiries into your credit history
• Duration of your existing and past credit accounts

In addition to your credit score, lenders also consider these factors:

• Your age and residence
• Your income and employment
• Your credit utilisation ratio
• Your debt-to-income ratio
• Your collateral, if applicable

Assess Your Finances and Requirements

While it’s possible to opt for a second loan, remember that it can be quite taxing on your finances. This is because you need to repay two loans instead of one.

In simple words, you need to pay two sets of EMIs every month, which can be difficult to handle. But you can manage them by following these tips: 

• Assess your income from all the sources and your financial standing
• Avoid a second loan if your DTI (Debt-to-Income) ratio is high
• Opt for terms that you can afford to repay

Apply with a Co-Applicant or a Guarantor

Another smart strategy is to add a co-applicant or a guarantor. This helps you get easy approval; however, make sure the co-applicant has an excellent score. In case you fail to repay the loan, your loan will be repaid by the guarantor or co-applicant.

The chances of approval on your second loan increase significantly as the risk for the lender reduces. Ensure that these individuals possess the following:

• A favourable credit report and a high credit score
• No history of defaults for loans or credit cards
• A stable income and employment
• A low credit utilisation ratio
• A low debt-to-income ratio

Also Read: What Is a Co-Application for a Loan

Choose a Suitable Repayment Tenure

The tenure plays a critical factor when applying for any type of credit. This is because it helps you manage loan repayment seamlessly. Another reason is that the timeline you choose influences the EMI you need to pay.

While selecting a suitable tenure, consider the following parameters:

• Assess your monthly expenses to check your affordability
• Opt for a shorter tenure if you wish to repay your loan earlier
• If you want to pay smaller EMI amounts, a longer tenure is ideal

Keep Your DTI Ratio Low

What is DTI? Simply put, this is your Debt-to-Income ratio, which is an indication of your debts in relation to the total income you earn. Maintaining a low debt-to-income ratio can be helpful when opting for a second loan. 

Here’s a quick gist of what you need to know about DTI:

• A low DTI ratio shows a strong financial standing since the amount you spend towards your debt repayments is lower. 
• A DTI ratio of less than 35% is considered ideal, and the chances of approval on your loan applications are better.

When is Getting a Personal Loan and a Home Loan Together Ideal?

With an answer to the question, ‘Can I take a home loan and a personal loan simultaneously,’ you can make the right choice considering the pros and cons. Here are a few instances when it’s a smart decision:

• If you need funds to make a down payment for your home
• If you require additional funds to renovate your existing home

Planning your loan application process properly and choosing the right lender is important to protect your financial health. One such lender to rely on for an Instant Loan is Fibe. We offer up to ₹5 lakhs at affordable rates. You can get the required funding with flexible repayment plans and no hidden costs. Get started by simply downloading our Instant Loan App or applying directly through our website to apply for a loan today. 

FAQs on Availing a Personal Loan and Home Loan Simultaneously

Can a person have two loans at the same time?

Yes, there are no restrictions on getting more than one form of credit simultaneously. However, ensure the following parameters:

• Maintaining a spotless credit history
• Being able to manage the repayment effortlessly

Can you get a personal loan if you already have a home loan?

Yes, it is possible to apply a personal loan, even if you’ve applied for a home loan. At Fibe, you get to enjoy the following benefits when you opt for a personal loan:

• Ample funding of up to ₹5 lakhs
• Affordable rates
• Flexible repayment options
• Minimal documentation 

Does personal loan impact home loan?

No, getting a personal loan doesn’t impact your existing housing loan directly. However, if you don’t manage repayment properly, getting another loan can increase your financial burden.