Can I Take a Personal Loan and
Home Loan Together?

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Yes, there is no upper limit on the number of loans that one can avail at one time, so technically yes, one can avail a personal loan and home loan together. The idea of repaying two loans simultaneously might seem daunting. However, opting for both the loans together could prove to be beneficial.

Why should one consider opting for a personal loan & home loan together?

When purchasing a home, upto 20% of the cost of the property requires to be paid upfront towards the down payment. The various fees and charges also can be a large amount, upto around 5-7% of the value of the property, which may not be covered by a home loan. Depending on the buyer’s financial situation and the cost of the house, making an outright payment might prove to be difficult. This is where a personal loan extends a helping hand in making the down payment towards your home.

Some Conditions which help in taking personal loan & Home loan together.

1. Credit Score

Your credit score is a reflection of your financial health and repayment history. Borrowers with a credit score of 750 and above have a greater chance of obtaining two loans together because of their consistency in repaying loans in the past.

2. Maintain an Ideal Debt-to-income Ratio

Your debt to income ratio is the sum of one’s debts divided by their total gross monthly income. Gross monthly income is your income excluding deductions. Ideally, the sum of total debts should not exceed more than 50 per cent of your income to ensure that repayment of the loan does not impact your standard of living.

3. Consider Opting for a Home Loan Top-up

A personal loan is unsecured and incurs a higher rate of interest as compared to secured loans. Opting for a personal loan in addition to a home loan will result in higher EMIs due to higher interest payable. Consider opting for a top-up on your home loan to reap the advantages of a lower rate of interest and longer repayment tenure.

What is the eligibility criteria to be able to apply for a personal loan?

The eligibility criteria for a personal loan are as follows:

Self-employed professionals with a minimum turnover as specified as per the lender’s policies can apply for a personal loan.
Salaried applicants should earn at least Rs. 25,000 per month in metro cities like Mumbai and Delhi or Rs. 20,000 per month if they live in any other Indian city / town..
Salaried applicants should possess a minimum of 1 year of experience out of which a tenure of at least 6 months in the current company.
CIBIL score of 750 or higher

What documents do I require to submit while applying for a personal loan?

The documents required to apply for a personal loan include a copy of your address proof, KYC documents, a copy of your income proof, salary slips, proof of your income tax returns and a processing fee cheque.

Educate yourself and evaluate different loan products before shortlisting one that best suits your requirements.

Staying informed and making the right financial choices is the only manner to ensure healthy finances in the long run!

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* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.

FAQs

Can I apply for two loans at the same time? Will my credit score be impacted?

Yes, you may apply for two loans at the same time if you meet the lender’s eligibility criteria. However, multiple hard enquiries and higher repayment obligations may temporarily affect your credit score and overall loan eligibility.

Under what circumstances can I take a home loan and a personal loan together?

You may be able to take both loans together if you have a stable income, a manageable debt-to-income ratio, and a strong repayment history. A higher credit score may also improve the chances of approval for multiple loans. Ideally, your total EMIs should not exceed 30–40% of your monthly income for long-term financial stability.

Is it better to take a personal loan over a top-up on a home loan?

This depends on your financial requirements, repayment capacity, and urgency of funds. A home loan top-up may offer lower interest rates and longer repayment tenure, while a personal loan may provide quicker access to funds without property-related formalities.

Which loan should I close first: personal or home loan?

Many borrowers prefer closing a personal loan first because it usually carries a higher interest rate than a home loan and a shorter tenure, typically of up to 60 months. However, the right approach may depend on your financial goals, cash flow, tax benefits, and overall repayment strategy.