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Is It Possible to Have Both a Home Loan and Personal Loan?

  • 30-May-2022
Is It Possible to Have Both a Home Loan and Personal Loan?

If your CIBIL Score is good enough and meets the eligibility requirement of the lender, then you can avail both the loans at the same time. 


Bank loans are provided to meet your financial needs but not everyone qualifies for it. Thus, in order to ensure whether the fund is in safe hands, lenders want their customers to meet some basic criteria and if they feel that you would be able to handle both these loans and make payments regularly without any default; both home loans and personal loans can be obtained easily. 


But, paying double EMIs might look unsure and create a hassle if your income is not up to the mark because a double EMIs requires you to pay higher EMIs effectively. 


Therefore, the sanction of both the loans will depend on your eligibility, repayment capacity, credit scores, and other financial commitments.  


Points to be Consider while Applying for a Personal Loan and Home loan Together 

  • Longer EMIs and increased debt burden

The interest rate of personal loans is generally higher than the rates of home loans. When you avail a personal loan over a home loan, you are required to pay comparatively higher rate of interest for the personal loan

And if you take a home loan after getting a personal loan, then you will be required to pay less interest rates, but the outflow of your EMI and debt burden will increase. 


  • Good credit history and Debt to income ratio 

Lending institutions are strict about credit history, CIBIL Score, and debt to income ratio of the individuals before sanctioning two loans together to the same person.  

You should maintain a good credit history with payments on time & your debt-to-income ratio could not be more than 50 percent.  

Make sure about the personal loan that you are going to avail is an unsecured loan, the lender will give specific consideration to the above parameters.  

You can easily determine your debt-to-income ratio by using the given formula -  

Debt to income ratio = Total EMI / Net monthly * 100  


  • Helps in maintaining your credit score

Your credit score indicates your repayment history and financial health. Individuals with credit scores of more than 750 have a great chance of acquiring two loans at the same time because of their regularity in paying back loans in the past.  


  • Make an informed decision

Remember that your debt burden is increasing without a proper repayment plan and emergency funds to meet an uncertain situation might be the unconscious decision. Hence, it is essential to know the pros and cons of availing both the loans at the same time. 

The below table shows how the outflow of your monthly payable EMI should not be more than the stated percentage of your income.  

Home loan  Personal loan  
Not more than 40% of net monthly income Not more than 10% of net monthly income 




Personal Loan Bank Details  

Rate of interest  @10.50% per annum  
Loan amount  Up to Rs. 25 lakhs 
Repayment tenure Up to 7 years 
Processing fee  Up to 2% of the loan amount  


Current Personal Loan Interest Rates and Processing Fee 

Bank  Min Interest Rate (p.a)  Processing Fee  
SBI Bank  10.50%  Up to 1%  
Kotak Mahindra Bank  10.75%  Up to 1%  
HDFC Bank  10.50%   Up to 1%  
ICICI Bank  10.75%  Up to 1%  
IDFC First Bank  10.55%  Up to 1.15%  
Axis Bank  10.50%  Up to 1%  
Yes Bank  10.50%  Up to 1%  
IndusInd Bank  10.70%  Up to 1.75%  
Bank of Baroda  10.50%  Up to 1.15%  
Punjab National Bank  11.00%  Up to 1.25%  
Karur Vysya Bank  11.15%  Up to 1.75%  
Standard Chartered  12.00%  Up to 2%  
South Indian Bank  10.50%  Up to 1.50%  
Tata Capital  11.99%  Up to 2%  
Fullerton India  12.50%  Up to 2%  
HDB Financial  12.49%  Up to 2%  
RBL Bank  14.00%  Up to 1%  
Incred Financial  20.00%  Up to 4%  
Hero Fincorp  20.00%  Up to 4% 



Benefits of a Personal Loan 

  • Pocket-friendly EMI: - Loan is all about EMI, the first thing that appears in mind is can I afford to pay regular monthly EMI? So, putting your stress aside, a personal loan provides you with a pocket-friendly EMI.


  • Flexible Repayment: - Generally, banks offer flexible repayment options which range from 12 to 60 months (about 5 years). According to your requirements, you can choose a suitable tenure period.


  • Loan up to 25 Lakh: - Under personal finance, you can get a maximum loan amount up to Rs. 25 lakhs depending on several factors such as age factors, repayment capacity, applicable financial profile, work experience ...etc.


  • For Multiple Purposes: - It is a loan that can be used for multiple purposes whether it is a medical emergency, marriage, travel expenses, higher studies, or endless personal usage.


  • Online Application: - As you know time matters a lot, easing your application. You can apply online by filling in an application form, uploading relevant documents & submitting the same.


Personal Loan Eligibility  

For salaried individuals - 

  • The age of the salaried applicant should be between 20 years to 60 years of age.
  • The work experience of the applicant should be a minimum of 1 to 3 years.
  • The credit score should be more than 750.
  • The minimum salary should be Rs. 25,000.
  • The nationality must be the resident of India.

For self-employed individuals - 

  • The age of the self-employed applicant should be between 21 years to 68 years of age.
  • The credit score should be more than 750.
  • The continuation of a business must be at least 2 to 5 years.
  • The nationality must be the resident of India.

Also read: -  Compare Lowest Interest Rate for Personal Loan by All Banks


Home Loan Bank Details 

Rate of Interest  @6.80% onwards 
Loan amount  Up to Rs. 5 Crores 
Repayment tenure  Up to 30 years  
Processing fee Up to 1% of the loan amount  



Lowest Home Loan Rates by Top Banks in India  

Bank name  Interest rates Processing fee  
Bandhan Bank  8.75% Up to 0.25% 
Axis Bank  6.85% 1% 
Aditya Birla  9.00% Up to 1% 
Bank of India 6.80% Up to 0.25% 
Bank of Maharashtra  7.05% 10,000 
Canara Bank  6.90% Up to 0.25% 
HDFC Bank 6.86% Up to 0.25% 
Federal Bank  7.90% Rs. 3000 to Rs. 7500 
Central Bank of India  6.85% Up to 0.25% 
Bank of Baroda 6.80% Up to 0.25% 
PNB Housing  7.35% Up to 0.25% 
HSBC Bank  7.45% 1% (Rs. 10,000) 
ICICI Bank  6.90% Up to 0.25% 
IDBI Bank  6.90% Up to 0.25% 
IDFC First Bank  7.00% Rs. 5000 
IIFL  8.70% 1.25% 
Indiabulls 8.99% Up to 2% 
Indian Overseas Bank  7.05% 0.50% 
Kotak Mahindra Bank  6.88% 0.50% 
LIC Housing Finance 6.90% Up to 0.25% 
Yes Bank  7.00% Up to 0.25% 
United Bank of India 7.10% 0.59% (Rs. 1180 – Rs. 11,800) 
Union Bank of India  6.80% 0% - 0.35% 
UCO Bank 7.15% 0.15% (Rs. 1500 – Rs. 15,000) 
Tata Capital  8.50% 2% 
State Bank of India 6.80% 0% - 0.35% 
Standard Chartered Bank  7.99% Up to 1.00% 
Punjab National Bank  6.85% Up to 0.25% 


Benefits of a Home Loan 

  • Get affordable Interest Rates: - Get compared deals from top banks and choose the best offering at affordable interest rates.


  • Maximum Value on your Property: - You can avail a loan amount of up to 85% of the property value to fulfill your personal & business needs.


  • Repayment Tenure of up to 30 Years: - Flexible repayment to make EMIs affordable, repayment tenure scaled up to 30 years.


  • Minimal Documentation: - Making your borrowing as smooth as possible, home loan requirements are minimum and concise.


  • Interest Subsidy under PMAY: - The interest subsidy under Pradhan Mantri Awas Yojana (PMAY) allows you to get the benefits of the subsidy.


  • Home Loan Balance Transfer: - Worried about paying off higher rates? If you are getting better rates from other lenders, you can ask your existing lender to balance transfer accounts to lower interest rates.


Home Loan Eligibility Criteria  

For salaried individuals: - 

  •  The age of the salaried applicant should be between 23 years to 62 years of age.
  • The credit score should be more than 750.
  • The minimum work experience should be a minimum of 3 years.
  • The salary of the applicant should be a minimum of Rs. 25,000.
  • The salaried applicant can avail a minimum loan amount of up to Rs. 3.5 crores.


For self-employed individuals: - 

  • The age of the salaried applicant should be between 25 years to 70 years of age.
  • The credit score should be more than 750.
  • The business continuation should be a minimum of five years.
  • The nationality must be the resident of India.
  • The self-employed applicant can avail a maximum loan amount of up to Rs. 5 crores.


For professional individuals: - 

  • Professionals such as Dentists, Cost accountants, Management consultants, Dentists, Doctors, Architects, Engineers, Chartered Accountants, etc... are eligible for the criteria of a home loan.


  • The age of the individual at the time of availing the loan should be more than 21 years to 65 years of age.

 Also read: -  Top 5 Ways to Increase Home Loan Eligibility


Factors Affecting Eligibility of a Home Loan and a Personal Loan 

The eligibility criteria for a personal loan and home loan are determined by the lender on the basis of the following factors - 


Age criteria – Age plays a crucial role in the eligibility of such loans for evaluating your tenure that decides the repayment period of a loan which turns into a home or personal loan EMIs.  

As long as the repayment tenure, the EMI will be lower, and vice-versa to the given loan amount and interest rates.  


Many existing loans – If an individual has many existing loans, then the chances of approving loans by the lender become less. By this, the bank evaluates that the debt is high and also checks whether you are a needy borrower or not.  


Repayment tenure – The main factor by which the lender determines whether you are able to pay back both the loans or not. It also depends on your income and revenue.  


Nature of employment – The eligibility criteria for salaried individuals vary from self-employed individuals. Your monthly income is evaluated by the EMI and considers whether you are eligible or not.  


 Professional experience – It is also one of the major factors that affect the eligibility of such loans, and it also helps to work in your favor while sanctioning these loans. 


Why to choose financeseva for a home loan and a personal loan?  

Financeseva will help you -   

  • In comparing various offers from different banks
  • In getting a hassle-free loan process
  • to choose the best deal based on your requirements
  • To avail doorstep service and personalized loan offer


FAQs – Personal Loan and Home Loan 

What is a Personal loan? 

A personal loan is an unsecured loan, which means you do not need to pledge any type of collateral or security in aspects of availing loan. Personal finance can be used for endless purposes. 


What are the interest rates on Home Loans? 

The current housing loan interest rate begins from 6.50% onwards. 


Which bank is best for personal loans? 

There are various banks & NBFCs that offer personal loans at an attractive rate. Some banks are highlighted & preferred by most borrowers as listed below: -  

  • Kotak Mahindra Bank
  • HDFC Bank
  • ICICI Bank
  • Axis Bank


Which bank home loan interest rate is low? 

There are several banks & financial institutions that offer home loans at the lowest interest rates listed below -  

  • Kotak Mahindra Bank – 6.65%
  • State Bank of India – 6.70%
  • State Bank of India – 6.70%
  • HDFC Bank – 6.65%
  • Axis Bank – 6.70%
  • Bank of Baroda – 6.75%


What are the documents required for a home loan? 

  • 2 passport-sized photographs
  • PAN Card
  • Aadhar card and passport
  • Address proof
  • ITR with computation of income
  • Bank statement
  • Sanction letter and loan schedule
  • Property papers
  • A cheque for the processing fee
  • Salary slip
  • Appointment letter, etc...


What are the benefits of availing a personal loan? 

There are many benefits offered on availing personal loans, including low rates, maximum loan amount quick processing, etc... 


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