Can I take home loan for other purposes?

Yes, you can get a second loan to buy another property based on your income and repayment track record. Your income should be enough to justify the timely repayment of both the home loans.

Is home loan a personal account?

The major difference between a home loan and a personal loan is the personal loan is unsecured. That means the lender does not ask for a collateral. For a home loan, the lender will usually use the borrower’s house as the collateral.

Can you get a bank loan for personal use?

Personal loans from banks You’ll likely need good credit to qualify for a personal loan from a bank. It also helps to already have an account with the bank. Existing customers may receive benefits such as lower rates, higher loan amounts and an online loan application process.

Can I use my house as collateral for a personal loan?

When you take out a secured personal loan, the lender often puts a lien against the collateral. The lien gives a lender the right to take your property if you fail to pay back the loan. But you can still use your collateral, such as a car or home, while you’re paying off the loan.

Which is cheaper personal loan or home loan?

Generally, home loans are cheaper than personal loans and hence the latter should be repaid first. A repayment of Rs 1 lakh towards a loan of Rs 3 lakh, payable over three years, at 8.75 percent rate of interest will entail savings on interest to the tune of Rs 24000.

Can I sell my house if it is collateral?

You need the lender’s permission to sell your property, which is in debt. It is highly unlikely that a lender will allow you to sell the mortgaged property unless the mortgage loan availed is repaid.

Can you use a personal loan to buy a house?

Personal loans are not typically used to pay for a house. However, there may be some exceptions in certain situations where it’s not only possible, but it may be a better option than a mortgage loan. Buying a House With a Personal Loan. If you’re buying a standard single-family home, getting a mortgage is your best bet.

Can I use a personal loan to pay for home improvements?

One way to make your project more affordable is to take out a home improvement loan, which is simply a personal loan that’s specifically tailored to help cover renovation costs. A personal loan for home improvement might be a good choice depending on your needs and the interest rate you’re able to secure.

Can you use your loan money for anything you want?

The answer depends on the terms of your loan. Some loan agreements may restrict your use of the money, while others may not. 2  If your loan agreement, or contract, says you must use the funds for a certain purpose, then you’d be taking a big risk if you decided to use them for something else.

What are some examples of loans for a specific purpose?

Examples of loans for a specific purpose include: Home loans (or mortgages) generally are used to purchase a home or refinance an existing home loan. It’s virtually impossible to get that money unless you go through a closing process which involves using the property as collateral for the loan.