Yes, you can get a personal loan if you have a home loan as long as you meet the eligibility criteria for the same.
• One must be a salaried employee or a self-employed individual or professional
• One must be between 21 years to 60 years of age
• One must be able to provide proof of regular income and stable employment history
• One must have a good credit score and credit history
• One must have a good long-standing relationship with the bank
The banks are willing to give a personal loan despite having a home loan as long as you can prove to be capable of repaying the same without defaulting on payments. The banks will check your debt to income ration, credit score and credit history before approving your personal loan.
Things you must be aware of before applying for a personal loan over a home loan:
1. High interest rate:
A personal loan will have a higher interest rate than a home loan as a personal loan is an unsecured loan. As compared to a home loan, the lenders do not have any security in case one defaults on payments and thus, the risk factor is very high. So, personal loan interest rates begin at 10.99% and can go up to 32% depending on your credit profile.
2. Credit score:
Make sure you check your credit score before applying for your personal loan as a personal can easily get rejected if you do not have a good credit score. Loan rejections can negatively impact your credit score and further reduce it. Lenders will give a personal loan only to creditworthy customers and that is judged based on one’s credit score and credit history as a personal loan is an unsecured loan. So, if you have defaulted on your home loan payments and have a bad credit score, we recommend that you improve your credit score before applying for a personal loan.
3. Credit mix:
A good credit mix is when one has a healthy balance of secured and unsecured loans. So, applying for a personal loan over a home loan will give you a good credit mix thereby boosting you credit score as a personal loan is an unsecured loan while a home loan is a secured loan.
To apply for a personal loan, click here.