Can I Have More Than One Home Loan_WC
Can I Have More Than One Home Loan?
How many Home Loans can I get? This is a question that borrowers ask often. In India, there is no limit on how many loans a person can take. Can I take 2 Home Loans? Yes, if you are capable of paying 2 Home Loans, you can avail of 2 Home Loans. However, remember that Home Loans are big-ticket loans and therefore, lenders exercise excessive care and scrutiny while sanctioning these loans. Thus, if you already have a Home Loan running, it won't be easy for you to get another approved, until and unless your income is high enough to support two different Home Loans.
Here are a few tips that will help you avail yourself of more than one Home Loan in India.
- The first thing that your lender will check after receiving your Home Loan application is your credit score. Lenders require borrowers to have a CIBIL score of 750 plus to be eligible for a Home Loan. If you already have a Home Loan running and wish to take another loan, make sure your CIBIL score is at least 750. The higher your CIBIL score, the higher your chances of getting approval for a second Home Loan.
Also Read: What is a CIBIL Score?
- Keep your FOIR under 40% if you want to take another Home Loan. FOIR or fixed income-to-obligation ratio is the ratio of your earnings to your monthly payment obligation. When your FOIR is under 40%, your lender knows you are capable of paying a second EMI and therefore, they will most likely approve a second Home Loan application.
- If you think your chosen lender will not approve your second Home Loan application, add a co-applicant to your Home Loan application. This co-applicant should be an earning individual with a high credit score.
These tips will certainly help you avail yourself of a second Home Loan. However, always remember that one must only borrow what one can easily repay.
Also Read: Is Co-Applicant Mandatory for Housing Loan?
*Terms and conditions apply.