Can You Use A Personal Loan For Flat Registration? Check Key Factors Before Borrowing

When buying a flat, it is not only the cost of the flat you need to think about. There are extra charges too. Flat registration comes with expenses like stamp duty, registration fees and legal costs.

Depending on where you are buying that flat, these charges can go as high as 6% of the property’s value.

A home loan typically will not cover the costs of flat registration. Stamp duty and registration fees are considered out-of-pocket expenses. If arranging this extra money feels tough, a personal loan for flat registration might be a helpful option. It can give you the quick financial support you need to take care of these expenses.

What is property registration?

Property registration is the legal process of recording the ownership of a property in your name. It happens after you have bought a flat or a residential property. The government charges a registration fee and stamp duty to complete this process. These fees vary from state to state.

Can you use a personal loan for flat registration?

Flat registration is the legal process of recording the property in your name. It includes stamp duty and registration fees, which can be quite high. For instance, in Delhi, stamp duty is 6% for male buyers and 4% for female buyers. In many cases, flat registration charges can run into lakhs of rupees.

To manage these costs more easily, you can consider taking a personal loan for flat registration. The good thing about personal loans is that they are unsecured, meaning you don’t have to provide any collateral when applying.

Easily get personal loans up to Rs 50 lakhs through Moneycontrol’s digital lending platform. Moneycontrol has partnered with eight top lenders to offer personal loans. The process is completely digital. Choose your EMI plan, enter your details, and finish a quick online KYC. With interest rates starting at 10.5%, getting a loan is now faster and simpler than ever.

Benefits of a personal loan for flat registration

There are multiple benefits to taking a personal loan for flat registration.

• The best part is that these loans are processed quickly, usually between 24 and 72 hours, so this can help you in making a lump-sum payment for registration on short notice.


• A personal loan also gives you flexibility, as you can spend the amount on anything related to your home purchase and not only on flat registration. For example, you can use it to pay for furniture or moving costs. The lender doesn’t ask how you use the money, which makes it a convenient option for covering multiple expenses.


• You don't have to keep anything as security or mortgage when taking a personal loan. This means the lender gives you the loan based on your income and credit score, without asking for property papers. And the process is so simple and easy and requires minimal documentation.

Before taking a personal loan for flat registration, there are a few things to keep in mind:

• These loans usually come with higher interest rates compared to home loans.


• They also have shorter repayment tenures, typically between one to five years, which can increase your monthly EMI burden.

How to apply for a personal loan for flat registration

Here is a step-by-step guide on how to get a personal loan:

1. The first step is to check the loan eligibility on the lender's website. This will grant you the amount based on your salary, credit score, and existing debts.


2. Then, compare the interest rates, processing fees and prepayment charges of different lenders.


3. After the comparison, choose the loan that suits you best.


4. You can either apply directly on the bank's or loan aggregator's website.


5. After this, submit the necessary documents, such as an Aadhaar card, PAN card, utility bills, income proof and employment proof.


6. Once approved, the loan amount is directly credited to your bank account, usually within 1 to 2 days.

You can explore multiple loan offers through the Moneycontrol app and website from eight reliable lenders. You can apply for loans up to Rs 50 lakhs in a 100% paperless process. The interest rates for these loans start as low as 10.5% per annum.

Is it better to use a top-up home loan instead?

If you already have a home loan and need extra funds for registration, another option is to apply for a top-up loan from your home loan provider.

Top-up loans usually have lower interest rates than personal loans, longer tenures and easier repayment options. That said, getting a top-up loan may take longer than a personal loan and could involve more paperwork.

Get Instant Loan Up To Rs.50L

Tips before taking a personal loan

• Compare interest rates: Always check multiple banks or NBFCs before choosing one.


• Use EMI calculators: Know how much you will repay every month.


• Don’t borrow more than needed: Only borrow the exact amount required for registration.


• Check processing fees: Some lenders charge 1-3% of the loan as processing fees.


• Read the fine print: Watch out for hidden charges, penalties, and pre-closure rules.

Conclusion

Taking a personal loan for flat registration can be a smart choice if you need quick funds and want flexibility in repayment. It is especially helpful because most home loans don’t cover extra costs like stamp duty, registration charges, or legal fees. With a personal loan, you get fast access to money, don’t need to pledge any collateral, and can choose a repayment plan that suits you.