Can You Apply for Multiple Home Loans Simultaneously in India- Explained!

In the wake of exorbitant real estate prices, it is almost impossible for people to fulfil their dream of buying a house. Sometimes even after using all their savings, it is difficult to arrange funds for a house property.  This is why, today, housing loans are no less than a boon. With home loans, it is easy to purchase a house if you meet the home loan eligibility criteria.

But what if you want to buy more than one house? Can you apply for multiple home loans simultaneously?

Read on to know.

Number of Loans You Can Avail

No rule in India restricts you from taking multiple loans. Therefore, you can avail as many home loans as you wish. However, you must have a strong repayment capability. You must have an excellent repayment track record and credit score to apply for home loan for multiple houses. You must assure the lender that you would be able to repay the EMIs of the loans timely. The lender while lending housing loans would closely scrutinize your credit score. The lenders would also consider the following factors while approving your home loan applications:

  • Income
  • Work experience
  • Savings
  • Debt to income ratio
  • Age
  • Qualification

Tax Benefits for Two Home Loans

You can enjoy tax benefits on any number of home loans within the prescribed limits. However, you might need to check the latest updates about the number of houses you can consider as let out and self-occupied. The following are the tax benefits on housing loans.

Tax deduction on principal repayment

You can claim a tax deduction on the principal repayment of your home loan under section 80C of the Income Tax Act, 1961. The maximum limit on the tax deduction for principal repayment is Rs 1.5 lakh. You can either exhaust the benefit for one house or use it for all the home loans you avail.

Tax deduction on interest repayment

You can claim a tax deduction on the interest repayment under section 24 (b). Similarly, there is a restriction of Rs 2 lakh on the interest repayment that you can claim as a deduction if the house is self-occupied. However, if the house is let out, there is no upper limit of the deduction amount.

  • If you have more than two houses, you are allowed to treat two houses as self-occupied.
  • If more than two houses are treated as self-occupied, you could be asked to display notional income justifying it.
  • Similarly, you cannot set off losses from the head house property for more than Rs 2 lakh against other income in the same year.

Yes, you can apply for multiple home loans at the same time in India, even if the properties are not in the same city. But, the loan amount would significantly depend on your home loan eligibility, like your income, property location, track record, existing history, credit score, etc. However, you must remember that a housing loan isa long-term commitment. Availing two home loans simultaneously could hamper your finances or put an unnecessary burden on your budget.

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