Blog

A Personal Loan for Buying a Resale Flat: Is It the Right Choice?

Submitted by admin on October 15th, 2025

Purchasing a house is among the largest financial choices that a majority of individuals make throughout their lifetime. Although a lot of buyers in present times tend to give preference to the resale flats as they are ready to move in, may be in well established locations and in some cases the prices may be competitive to the new launches. Nevertheless, it may be difficult to work out the money to close a resale flat transaction in a short time. It is here that we can take into consideration the idea of a personal loan to purchase a resale flat as a flexible solution of financing.

Why Consider a Personal Loan for a Resale Flat?

Resale deals normally close quicker as compared to under-construction property deals. The sellers mostly demand immediate payment and particularly when they are in need of another purchase. When your savings or home loan may not be enough a personal loan can be used.

A personal loan is quicker, does not need collateral and does not need a lot of documentation, in contrast to a home loan which is more time consuming and much more rigorously checked and processed by law. As an example, you have resale flat costing?

50 lakh and your bank may sanction you only 40 lakh in a home loan, you may take a personal loan to finance the difference of 10 lakh. This is so that you do not lose the property because of delays or lack of funds.

Benefits of Using a Personal Loan for a Resale Flat

1. Quick Disbursal – Personal loans also take only a few days to be processed and therefore they suit impatient resale.
2. No Collateral Required – You do not have to secure property or mortgage the property as required in case of home loans.
3. Flexibility in Usage – Other than financing the flat in part, registration fees, stamp duty, brokerage, or small-scale refurbishment can also be financed through the loan.
4. Short Tenure – Personal loans are usually between 1-5 years, which means that you can get out of debt quicker as opposed to a long home loan term.

Key Considerations Before Applying

Personal loans although convenient are more expensive in terms of interest rates than home loans. As such, it is necessary to exercise prudence with them. The following are some of the considerations:

• Loan Amount Limit – The majority of personal loans are limited (e.g. 5 to 20 lakh), and it is better to use them to finance only part of the purchase, and not the entire one.
• Higher EMIs – The length of the tenure is reduced and the rate is increased resulting in increased monthly payments and would impact on your cash flow.
• Eligibility Factors – Approval will largely depend on your income, credit score and outstanding liabilities. A good repayment history increases your success.
• Combination with Home Loan – The best common sense strategy is that a home loan is taken as the main source and a top-up is taken in the form of a personal loan to cover the deficit.