Owning a home is a dream for many—a space to live peacefully with family. But with rising property prices and inflation, buying one has become a huge challenge. For most, the solution is a home loan.
But here’s the big question: If you already have a home loan, can you take another one? The short answer is yes—but it depends on several factors, and banks have specific conditions before approving a second loan. Here are the key factors that decide your second home loan approval
Income & Debt-to-Income Ratio (DTI): Banks compare your income with existing EMIs. If a large chunk of your salary is already going into loan repayments, the chances of another loan go down. Ideally, banks prefer your DTI ratio to stay under 40–50%.
Credit Score: A good credit score (usually 750+) boosts your chances. It signals strong repayment ability.
Repayment History: If you’ve been paying your first loan EMIs on time without default, banks see you as a reliable borrower.
Property Value & Loan-to-Value Ratio (LTV): Banks generally finance 75–90% of the property’s market value. The higher the value, the bigger your eligibility.
Purpose of Loan: Whether you’re buying for personal use or investment purposes. Loans for investment properties often come with stricter terms.
