Don’t get required home loan(70% of property) due to existing car loan ?

POSTED BY Vivek Chauhan ON June 8, 2013 2:53 pm COMMENTS (3)

Hi Sir,

I purchased a flat of 31 lakh and I already did a 30% payment from own sources but now I want home loan. I enquired regarding home loan in HDFC and they said keeping your car loan constraint you are only eligibly for 17.50 lakh loan amount if you go for 30 year tenure  but if you 20 year tenure then you will get 15 lakh loan amount.

They told me that to get maximum loan from bank go for 30 year and whenever you submit the NOC of your current car loan after doing prepayment of car loan. We will increase you loan amount 22 lakh and decrease your loan tenure to 20 year.

I want to know should I go for 30 year home loan tenure to get maximum home loan from bank or should I go for 20 year.

One more thing is it possible to change the loan tenure from 30 year to 20 year and get the full loan from bank after submitting the car loan NOC.



3 replies on this article “Don’t get required home loan(70% of property) due to existing car loan ?”

  1. Credexpert says:

    Dear Mr. Chauhan,

    How many other obligations are you currently servicing other than the current car loan? Would this Home loan burden your credit servicing capacity? Irrespective of the tenure, opt for the Home loan amount that is within your servicing capacity.

    You would require a loan of approximately Rs. 21,70,000 (i.e. 31,00,000 – 30% down payment).

    Since the bank is providing you with an option of increasing your loan amount from 15 lacs to 22 lacs and reducing the tenure from 30 to 20 years after you submit the NOC of your current car loan then, we would suggest that you opt for 30 year tenure now. Prepay/systematically close your car loan and then increase the loan amount thereby reducing the tenure to 20 years.


  2. Dear Vivek, if your lender is not ready to give full 21L Rs. Loan, please opt for car loan closure first to get full loan value for 20Y from day one. Yes it’s possible to convert your 30Y loan to 30Y.



  3. Vivek Chauhan says:

    No suggestion … 🙁

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