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.
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.
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
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.
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|
|Rate of firstname.lastname@example.org% per annum|
|Loan amount||Up to Rs. 25 lakhs|
|Repayment tenure||Up to 7 years|
|Processing fee||Up to 2% of the loan amount|
|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%|
For salaried individuals -
For self-employed individuals -
|Rate of Interestemail@example.com% onwards|
|Loan amount||Up to Rs. 5 Crores|
|Repayment tenure||Up to 30 years|
|Processing fee||Up to 1% of the loan amount|
|Bank name||Interest rates||Processing fee|
|Bandhan Bank||8.75%||Up to 0.25%|
|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|
|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)|
|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%|
For salaried individuals: -
For self-employed individuals: -
For professional individuals: -
Also read: - Top 5 Ways to Increase Home Loan Eligibility
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.
Financeseva will help you -
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: -
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 -
What are the documents required for a home loan?
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...