No, you generally cannot directly transfer personal loan to home loan. They’re fundamentally different types of financing. A personal loan is unsecured (no collateral) and meant for general purposes, while a home loan is secured by property, has a longer tenure, and often offers lower interest rates.
Since direct conversion isn’t possible, here are some strategies you can use to manage or refinance your personal loan:
You can apply for a fresh home loan (when buying a property) and use it to pay off your personal loan separately. This doesn’t convert the loan, but helps you refinance debt into a cheaper, secured loan.
If you already own a property, you might consider a Loan Against Property. This is a secured loan where your home serves as collateral, and the funds can be used to repay your personal loan.
You can transfer your personal loan to another lender offering a lower interest rate. This doesn’t make it a home loan, but it can reduce your EMI burden or interest costs.
Even if you're refinancing or taking a loan against property, lenders will check your credit score, income, and loan-to-value (LTV) ratio to evaluate your risk.
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Hi Friend,
No, it is not possible to convert a personal loan into a home loan. Personal loans can be transferred from one bank to another, though. The facility offers a number of advantages, including a lower interest rate and a top-up loan.
I hope this helps:)
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Can one transfer personal loan to home loan
Rodneyrose
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2022-11-25T10:52:48+00:00 2022-11-28T20:21:27+00:00Comment
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