Can I Have More Than One Home Loan?
Yes, you can avail of more than one Home Loan if are capable of repaying them. 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 may require borrowers to have a high CIBIL score to be eligible for a second 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 approved for a second Home Loan.
Also Read: What is a CIBIL Score?
- Try to keep your FOIR low, preferably below 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 low, your lender knows you are capable of paying a second EMI and therefore, they may most likely approve your second Home Loan application.
- If you think your chosen lender will not approve your second Home Loan application, you can add a financial co-applicant to your Home Loan application. This co-applicant should be an earning individual with a high credit score.
These tips can help you avail yourself of a second Home Loan. However, always remember that one should only borrow what they can easily repay.
Also Read: Is Co-Applicant Mandatory for Housing Loan?
*Terms and conditions apply.
