Personal Loans: The Quick and Easy Way to Finance Your Dream Home

By Jemmy, content writer  |  Tuesday, 18 October 2022, 02:34:02 PM IST

Personal Loans: The Quick and Easy Way to Finance Your Dream Home

For many people, owning a home is a dream. Unfortunately, it is difficult to employ available funds to finance a house payment. 75–80% of the purchase price is often covered by a mortgage, leaving the remaining portion in need of funding from other sources. Given the dramatic increase in real estate prices, even financing 20% of the cost out of pocket puts a significant strain on finances.

Compare the various houses that are in your price range and meet your needs. Then, find the greatest mortgage deal by researching the market. Determine how much the lender is willing to give, and then figure out how much you will need to pay yourself.

See if you may withdraw money from your savings or by selling off low-yielding investments. Calculate the shortfall now. This is the sum of money you can borrow via a personal loan.

In the short term, a personal loan might be an excellent way to supplement your savings and pay the down payment. In addition, you will be able to finalise the sale early, thanks to the speedy processing and immediate disbursement.

Benefits of using a personal loan as a down payment

The following are some benefits of using a personal loan to pay for your down payment on a home:

  •    Simple eligibility requirements
  •    No collateral damage
  •    rapid processing and distribution
  •    Little paperwork
  •    Flexible Terms for Repayment
  •    No early termination fee after six months
  •    There is no need to access your emergency fund.

Let's look at each point in more detail to better appreciate the advantages of taking out a personal loan in addition to a mortgage.

Simple criteria for eligibility

An important factor in the popularity of personal loans among borrowers is the requirements for applying. You may apply for a personal loan if you are an Indian national or resident with a monthly income of more than Rs 18,000.

No collateral required

As was already mentioned, the finest feature of a personal loan is that no collateral is required. This makes it quite handy for newly hired professionals who want to purchase their first property.

Instant processing and distribution

An individual loan is processed and disbursed very quickly. For instance, you may apply and have your loan disbursed within 24-36 hours with PaySense, one of the best loan apps. It's amazing, isn't it?

Minimal paperwork

Yes. You read correctly. All you have to do to apply for a personal loan at PaySense is complete an online form and upload the necessary paperwork.

  • PAN Card, Aadhaar Card
  • Three months' worth of pay stubs
  • For the previous six months
  • The salary account's bank statement

The loan provider evaluates the loan application. Your loan is accepted, and the payout is finished if your credit score is good and the other criteria are satisfied.

Flexible Terms for Repayment

You are free to select the loan's tenure based on your convenience. You can obtain personal loans at PaySense with amounts between Rs 5,000 and Rs 5,000,000. By adjusting the tenure, you can use a personal loan EMI calculator to get the EMI that you are comfortable with.

Important things to remember before financing your dream home with a personal loan Set a budget

Before beginning your property search, you must choose a budget and stick to it. A house purchase is a significant financial investment that calls for careful planning. Having a budget can help you choose the best property and rule out larger homes that are outside of your price range.

A budget can also assist you in determining how much money you can afford to borrow from the lender when intending to take out a home loan. To determine your EMIs and the amount of interest due, as well as to prepare for the repayment, utilise a loan EMI calculator.

Improve your CIBIL score

When asking for a loan, keeping a high CIBIL score is ideal. Why? This is so that the lender can utilise it to assess your creditworthiness.

Therefore, having a good credit score—ideally above 750—will make obtaining approval for a property loan simpler. In addition, you could be able to get more alluring interest rates. Therefore, take steps to increase your credit score and payback history before approaching your lender. Learn how by reading the next point!

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