Personal Loan

How Can One Take A Home Loan And A Personal Loan Together?


Loans are the best possible way to meet your requirements without causing much financial distress. A loan helps you in buying a house, financing a wedding, funding higher education, or making a down payment. Different loans serve different purposes a home loan helps you buy a home, whereas a personal loan meets your personal needs. But a dilemma that might hit you is, “Can both of these loans be taken together?” 

The answer is “yes”, you can take a home loan and a personal loan together. There is no limit on how many loans can be availed simultaneously. You should avail of both these loans only when you need extra funds to meet your housing needs. However, there are certain things that you need to know before going for a double loan. 

This article will help you navigate through personal loans and home loans and the process of applying for them simultaneously. 

What is a Personal Loan and what are its features? 

A personal loan, as its name implies, is a loan that you take on the behalf of covering your personal needs like financing a wedding, making a down payment, planning an abroad trip, etc. The lending institution allows you to borrow money with the promise that you have to repay it with an interest rate within a set period. 

Since a personal loan is an unsecured loan, you don’t have to pledge any of your assets to borrow the loan amount. However, there are certain other credentials like your loan history, and credit score that are taken into consideration. The lender gives you the amount without asking you for the reason for taking the loan. 

Some of the features of a personal loan are:

  • It is collateral-free. You don’t have to use your assets as a guarantee to repay the loan. 
  • It has high flexibility which means you can use it for any purpose like medical emergency, travel, renovation, etc. 
  • It has a flexible tenure that ranges between 12 months to 84 months, which prevents you from facing financial stress. 
  • The loan amount is quickly disbursed within two days of applying for it. 
  • You can ask for a higher loan amount, ranging from 10 lakhs to 40 lakhs.

Now that you know about personal loan and their features, it is time to know about home loan and their features. 

What is a Home Loan and what are its features? 

A home loan is a financial assistance that you borrow from a lender to buy a new house or a flat. The lender charges you with an interest rate on the principal amount which you have to repay in instalments within a set period. Home loans in India are taken for a variety of reasons like– home construction, home improvement, home extension, etc. 

There are certain features of a home loan that you need to know before going for it. 

  • When you apply for a home loan in a bank, the bank will go through all your property papers thoroughly. This process is known as due diligence of your property to prevent any type of scam. 
  • Banks charge a lower rate of interest on home loans compared to other types of loans. 
  • You can avail a lot of tax benefits by getting a home loan. Under section 80 C of the Income Tax Act, 1961, you can claim up to INR 1.5 lakhs on the principal amount. Under section 24(b), you can have INR 2 lakhs on interest repayments and several other benefits under sections 80EE, 80EEA, and 80C.

How to take Home Loans and Personal Loans together? 

When a personal loan is mixed with a home loan, you can use it to focus on your interior or process a down payment on your loan amount. However, you have to make sure to the bank that you are capable enough to repay the loan. Here are some things that you need to know while applying for both in tandem. 

  • Focussing on your financial muscle:

Though taking a home loan and a personal loan together is easy and possible, you have to make sure to the lender that you hold enough financial muscle to tackle the issue. This will build a sense of trust between you and the lender. 

  • Improving your credit score:

For every loan out there, a good credit score always helps to settle for a fair deal. You need to improve your credit score to get better flexibility options at lower interest rates. According to statistics, 79% of the lenders got a loan with a credit score of about 750 or more. 

  • Opt for a joint option:

If you borrow the loan with your immediate blood relative, be it your spouse or children, it enhances your ability to repay the loan. A co-borrower increases the eligibility of applying for the loan, and it poses a low risk towards the banks. 

  • Look for better terms and conditions:

You must look for a personal loan that has better terms and conditions and at the same time, the lender allows you high flexibility. For instance, a “Flexi” option will help you repay the interest on the amount utilised instead of repaying the interest on the total amount. 

  • Keep your track record clean:

In case you have pending loans, make sure that you clear all the dues and pay the instalments on time. During the time of applying for two loans simultaneously, you can use this as a document to show that you are capable of repaying on time. 


Both home loans and personal loans can be taken together to increase the house investment amount. It will help you gain extra leverage as well. Home loans and Personal loans can be obtained from various sources like Private Financiers, Public Banks, Private Banks, Housing Finance Corporations, etc. You will get about 80 percent to 90 percent of the house’s total price as your loan amount and the lender keeps the house until the loan is repaid. 

However, you must make sure that you have the desired capabilities to repay the loan. If you want to know more about home loans and personal loans, you can visit Piramal Finance.