A home is a lifetime asset which needs to be purchased with careful planning. It indeed is one of the most valued assets one purchases in one’s lifetime. In the current real estate scenario, with rent being very high, it makes sense to buy a home and pay for its EMI, rather than living on a rented home.
A Home Loan can be hugely beneficial if you want to buy your own house. You can avail a loan amount up to 80% of the property value. While the remaining value of the home needs to be paid out by the home buyer, as a Home Loan down payment.
A Home Loan down payment refers to the amount which the buyer needs to invest from his savings. It is indeed the biggest expense that is incurred from your pocket while purchasing the home. Quick Personal Loans can be a great option to pay for the down payments for a Home Loan.
A quick personal loan can be appealing and beneficial for the consumers with a good credit score. Depending on your eligibility, the interest rates can vary from 10% up to 36% p.a. The better is the credit score of a borrower the lower is the rate of interest offered to the borrower.
Instant personal loan benefits
The top reasons which support the decision to apply for a Personal Loan for a down payment include:
- Personal Loan can be used to save tax
The most significant advantage of using a Personal Loan for down payment of home loans is that you can save a large amount of tax. You can claim up to Rs 2 Lakh on the interest against a Personal Loan.
- A Personal Loan can save up the emergency funds
Using the option of an instant Personal Loan for down payment of a Home Loan can save the emergency saving a buyer has, for better use in the future. These emergency funds can be helpful in circumstances like medical emergencies, sudden travel, weddings, etc. If you use up all the savings, it could be quite risky for the future.
- FOIR maintenance
Availing a Personal Loan for the purpose of using it for down payment of the home loans should be less than 40% for both EMIs together to maintain the FOIR (Fixed Obligations to Income Ratio). If it crosses the amount, it can lead to a lot of personal sacrifices. Hence, maintaining a limit of 40% for both EMI’s (Home Loan and Personal Loan) is essential.
Finding your dream house is indeed a difficult task. Once you have found the dream house, you should not lose the opportunity to buy it. The large mass of the population does not have the finances ready to buy a house instantly. Hence, Home Loans can be availed to purchase the house and pay monthly EMI’s to the lending bank. However, Home Loans only offer loans up to 80% of the property value. Hence, the rest 20% needs to be paid by the buyer. It is a good option to save the emergency funds you have, and go for the best instant Personal Loans to pay for the 20% down payment of your dream house. Many lending banks have special features and offers for their clients when they avail a Personal Loan from the bank. Some of the leading banks providing instant Personal Loans are:
ICICI Personal Loan
ICICI Personal loan are unsecured loans which offer various robust features which include:
- The rate of interest for ICICI Personal Loans is usually a fixed one. It can be as low as 11% to 22%. The rate of interest is fixed based on the individual’s risk profile. The Salaried individuals can take a maximum of 20 Lakh loan, self-employed people are given loans up to 30 Lakh and Doctors are provided Personal Loans up to 40 Lakh.
- The instant loan tenure can range from minimum one year to a maximum of five years tenure period.
- The Personal Loans come with flexible repayment options such as auto debits, ECS, or PDCs. The loan amounts are instantly transferred to the clients, which is a great benefit.
The ICICI Personal Loan is very easy to seek to make a down payment, if you have an active Home Loan with the same bank. The Personal Loan linked to the Home Loan provides the cheapest rate of interest. It is the most economical and useful service provided by the bank.
Fullerton India Personal Loan
The Fullerton Personal Loan scheme offers instant Personal Loans to its existing clients with a great number of benefits which includes easy payment tenure and very economical interest rates. The interest rates for Fullerton Personal Loans vary up to 20% to 49%. The interest rate is calculated on the basis of the customer’s profile along with the tenure of loan.
The advantages of availing Personal Loans for a down payment of a Home Loan through Fullerton Personal loan schemes are:
- There is no collateral required for an instant Personal Loan.
- The Fullerton Personal Loan is available for up to 20 Lakh for the salaried individuals, whereas 30 Lakh is the upper limit for the self-employed. The Personal Loans offered by Fullerton have special loan schemes with high flexibility and longer tenure period for women, Home Loans down payments, and for emergencies.
Thus, Personal Loans are a great way to get the required funds in a short period of notice. You can pay back in a short tenure of time according to your capacity.