How You Can Avail A Personal Loan While Having A Mortgage

The banks can provide you a loan if you intend to make a purchase. These purchases are basically high priced and the applicant has to repay the bank within the agreed period of time. The banks provide a loan to the applicant after considering the eligibility of the applicant. To approve a Personal Loan, the banks check the credit score of the applicant. 

The credit score plays an important role in the approval of the loan. You need to have a good CIBIL score for your Personal Loan to be approved quickly. The CIBIL score is calculated on the history of previous loan payments made by the applicant. But what if the applicant already has a mortgage loan pending to be repaid and needs a Personal Loan. 

If the applicant already has a large amount of the mortgage loan pending and needs a Personal Loan then the banks may provide you the loan by checking your CIBIL credit score and your previous payment history. However, you can avail two types of loan from the banks and the money lenders: secured and unsecured types of loan. In a secured type of loan, the applicant can offer the bank collateral to get the loan processed. In unsecured loan you don’t have to offer the banks collateral, in turn, the banks may charge you a higher rate of interest due to the risk involved. 

Must Read: Five Ways In Which A Personal Loan Can Boost Your CIBIL Score

● Is it Possible to Get a Loan With a Mortgage or a Bad Credit Score? 

Due to a loan pending, the banks may be reluctant to provide another loan. The banks and the money lenders check personal loan eligibility of the applicant for the loan approval, however, you can also check your loan eligibility by using an online Eligibility Calculator. It is possible to get a loan from other sources. 

● NBFC’s and Money Lenders 

If you have a bad credit score or have a loan pending you can apply for a loan through NBFC’s. The Non-Banking Financial Companies (NBFC’s) provide a loan to applicants with low credit score and without any collateral. These companies might not be directly associated with the banks. So the interest rate on the loan may be different. These loans are provided for a shorter duration. The interest rate is higher if the credit score is low, however, a person with a good credit score can bargain on the basis of credit score and get the loan approved with a lower interest rate. 

● Peer to Peer Lending

Peer to Peer lending service is getting popular nowadays due to the perks it has. In these types of loan, the lenders provide the loan at a lower interest rate. These types of loans are approved due to the social connection. The money lenders provide Personal Loans with no credit score and no cosigner. But in some cases, the applicant might require a guarantor for the loan approval. 

● Credit Cards

Availing a credit card might not actually seem like a loan. In reality, you can avail a loan by applying for a credit card. These credit cards are issued to the applicant with a limit that cannot be exceeded. The limit the banks provide can be used by you for your personal needs. You might have to pay a high-interest rate on the credit card loan but there are ways to avoid that too. You can apply for a credit card through a bank that offers you a low introductory rate. Using the low introductory rate, you can use the spare period to repay the other loans. 

The above solutions can be used by the applicant to get his or her loans approved. But to apply through any of them all the pros and cons should be considered.

Must Read: 5 Do’s To Consider Before Taking A Personal Loan