Like a buyer often considers applying for a personal loan and rather than waiting for another few years to save money for the down payment and because they are either desperate to have a home of their own or the Coronavirus-induced lockdown may prompt more people to consider buying a home of their own or to avoid paying huge amounts as rent make your credit score.
Personal Loan Interest Rate
Personal loan interest rates are not secured loans banks provide these loans based on your face value and with no collateral and the interest on it is much higher, as compared to home loans and personal loans. Like a buyer can avail of housing loans in India in the range of 6.40%-20% interest and other rates also there. On the other hand, personal loan interest rates currently range between 10% and 25%. it would significantly increase the cost of buying your property and
The Personal Loan Eligibility
Personal Loan Eligibility is only recommended when the buyer has no other option or they can elevate the financial burden on buyers with its higher interest rates and shorter repayment method. Lower interest or high interest on personal loans are only possible and if one has a good credit score and stable income then you can take a personal loan. maintain a good credit score, if a personal loan is your only option, says a highly placed senior source in a leading any location-based and requesting anonymity.
Personal loan impact on credit score
A person's creditworthiness is also impacted and if he opts for a personal loan to pay down payment for a home purchase or As you have leveraged a part of your creditworthiness and repayment capability and towards taking the personal loan with good credit and this will affect the amount of home loan that the bank would be willing to issue and all. not more than 50% of your monthly take-home salary should be used for EMI payments it depends on your credit score.
For example:
Personal Loan and Home Loan EMI calculation
Let’s suppose that you have selected a house worth Rs 60 lakhs and the HDFC Bank Personal Loan is willing to give you a housing loan of Rs 45 lakhs with 80% of the property value and because of your good credit score and you have dutifully repaid all your past credit card loans and you have pay all EMI on time to time and the bank is also willing to make an exception for you and because you are an old customer you can take a personal loan.
EMI for a 25-year and at an interest rate of 9%, works out to Rs 51,882.
You now need Rs 9 lakhs, for the down payment and stamp duty and registration charges and other charges than only you can take a personal loan.
For a six-year and at an interest rate of 10% and the EMI works out to Rs 18,374.
It means that your total EMI outgo for a month would be Rs 60,200.
Like a lender to approve these three loans with a combined EMI of Rs 51,246, your monthly income should be about Rs 1.50 lakhs and the sum of all your EMIs cannot exceed 50% of your net monthly income you must have a credit score.
Conclusion:
we recommend that you use your own savings and to make the home loan down payment and go for a personal loan only if necessary you can take a personal loan with a good credit score.