Many people planning to buy a home also face other financial needs—such as paying a house down payment, interior work, wedding expenses, or clearing old debts. A common question that comes up is: Can I take a personal loan and a home loan at the same time?
The simple answer is YES, you can take both a personal loan and a home loan together, provided you meet the eligibility criteria set by lenders. However, there are a few important points you should understand before applying.
Understanding the Difference Between a Personal Loan and a Home Loan
Before taking both loans together, it’s important to know how they differ:
- Personal Loan:
- Unsecured (no collateral required)
- Higher interest rate
- Shorter tenure
- Can be used for any purpose
- Home Loan:
- Secured against property
- Lower interest rate
- Long tenure (up to 30 years)
- Used only for buying or constructing a home
Because these loans serve different purposes, banks and NBFCs allow eligible borrowers to hold both simultaneously.
Is It Allowed to Take Both Loans Together?
Yes, most banks and NBFCs allow you to take a personal loan along with a home loan. There is no legal restriction on holding two loans simultaneously.
However, approval depends on:
- Your income
- Your CIBIL score
- Your existing EMI obligations
- Your repayment capacity
Platforms like 24hrLoan help you check eligibility across multiple lenders in one place.
Also Read: Get a Personal Loan for Home Renovation
When Do People Usually Take Both Loans Together?
People often take a personal loan along with a home loan for reasons such as:
- Paying the home loan down payment
- House interiors and furniture
- Stamp duty and registration charges
- Shifting and moving expenses
- Managing other urgent personal expenses
Since home loans don’t cover these costs fully, a personal loan becomes helpful.
Eligibility Criteria to Take Both Loans Together
To manage both loans smoothly, lenders usually expect:
- Stable monthly income
- Good CIBIL score (700 or above preferred)
- Total EMIs within 40–50% of your monthly income
- Clean repayment history
If your income supports both EMIs, lenders are comfortable approving both loans.
How Your Income Affects Approval
Banks calculate something called the Fixed Obligation to Income Ratio (FOIR).
This shows how much of your income is already going towards EMIs.
Example:
- Monthly income: ₹50,000
- Existing EMIs: ₹18,000
- FOIR = 36%
In this case, there is room for another loan EMI, increasing approval chances.
Impact on CIBIL Score
Taking both loans together does not harm your CIBIL score if:
- You pay EMIs on time.
- You avoid late payments.
- You don’t over-borrow
In fact, disciplined repayment of multiple loans can improve your credit profile over time.
Should You Take a Personal Loan Before or After a Home Loan?
Both options are possible, but timing matters:
- Before Home Loan:
It might slightly reduce home loan eligibility due to the EMI burden. - After Home Loan:
Preferred by many, especially for interiors or additional expenses.
Using 24hrLoan, you can check how timing affects your eligibility with different lenders.
Interest Rate Comparison
| Loan Type | Interest Rate (Approx.) | Tenure |
| Personal Loan | 11% – 26% p.a. | Up to 5 years |
| Home Loan | 8% – 11% p.a. | Up to 30 years |
Because personal loans have higher interest rates, they should be used carefully and preferably for short-term needs.
Pros of Cons of Both Loans
Pros of Taking Both Loans Together
✔ Helps manage large expenses easily
✔ No restriction on the number of loans
✔ Flexible use of personal loan
✔ Can speed up the home purchase process
Cons You Should Consider
✘ Higher monthly EMI burden
✘ Needs strong income planning
✘ Risk if income becomes unstable
Always calculate EMIs carefully before committing.
How 24hrLoan Helps You Manage Both Loans
With 24hrLoan, you can:
- Compare personal loan and home loan offers from multiple banks.
- Check eligibility instantly
- Find lenders that accept existing EMIs
- Choose the best interest rate.
- Apply online without visiting branches.
This makes the process smoother and more transparent.
Tips to Get Approval for Both Loans
- Maintain a good credit score.
- Avoid multiple loan applications at once
- Keep bank statements clean.
- Choose a longer tenure to reduce EMI.
- Apply through a comparison platform like 24hrLoan
Also Read: Urgent 25,000 Loan Without CIBIL Score
Conclusion
Yes, you can take a personal loan and a home loan together, as long as your income and credit profile support the combined EMI burden. When used wisely, both loans can help you achieve your homeownership goal without financial stress.
With 24hrLoan, you can explore and compare the best personal loan and home loan options from multiple banks and NBFCs, making smarter borrowing decisions.