I currently have an ongoing personal loan with a high interest rate, and I’m planning to take a home loan soon. I was wondering can I merge or transfer my personal loan into the home loan to reduce the overall interest burden?
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Technically, you can’t directly convert a personal loan into a home loan. But there are a couple of smart ways to manage it that can help reduce your overall interest burden.
One option is to take a home loan and use part of that amount to repay your existing personal loan. Since home loans usually come with lower interest rates and longer repayment periods, this move can make your EMIs more affordable.
Another way is to take a loan against your property and use that money to pay off the personal loan. Again, this works because the interest rate on secured loans like home or property loans is much lower than that on personal loans.
So while there’s no direct “transfer” option, with a bit of planning, you can switch your high-interest debt to a more manageable one.