Is It Possible To Take More Than One Personal Loan At The Same Time?

A personal loan that can be acquired at any bank or NBFCs is an unsecured loan. The entire loan process of a personal loan is very quick and easy. You can easily get funds through this loan option. However, a lot of individuals are confused and often ask if they can apply for two or more personal loan options at the same time. So to answer this question today we're going to state all the factors, possibilities and chances of getting multiple personal loans and have listed some of the common factors below:

1) The amount has to be repaid:- Customers have to repay the loan amount they've borrowed. Banks don't give customers loans for free. They have to repay the amount along with the interest rate. So you'll have to repay both personal loans along with their interest rate. 

2) Credit score will be impacted:- The credit bureaus keep complete track of every loan, debt and credit you take. So the fact that you've applied for a personal loan will be recorded along with its repayment. And taking another personal loan will impact your credit score by a few points. And if you miss even a single instalment of both loan options, then your credit score will be heavily affected.

3) You may be charged with a high-interest rate:- If your credit score is low, then banks will either reject your application or they will provide the facility of a personal loan at a high interest rate. 

4) Your net worth should be positive: Banks will only approve your application if you have a decent income to repay the loan amount you've borrowed. So if you're planning to apply for another personal loan then you should be prepared to repay both instalments on time. 

5) You can be stuck in a vicious debt cycle:- If you ever face a situation where you don't have funds. Then you'll be stuck in a debt cycle because you'll have to repay the loan amount of both personal loans. 

6) More documentation will be needed:- If you've decided to apply for more than one personal loan, then banks will demand more documentation. No one wants a risky customer, so to confirm things banks will ask for additional documents. So you should have a stable job with a constant source of income, banks will check whether or not you can repay the loan options according to your repayment capacity. 

7) You can't pay more than 50% of your income as EMI:- Before applying for a second personal loan, you can use some online tools like instant personal loan online to calculate your expenses. Because you can't choose 50% of income as EMI for one loan. As of now, you'll have to pay both loans. So you can't exhaust 50% of your monthly income for one loan option. 

Advantages of personal loan

Applying for a personal loan is the best option if you're looking to get funds for immediate purposes. There are a number of advantages, benefits and services that can be availed through applying for this loan option. 

We've mentioned some of the most common advantages of a personal loan below: 

1) Hassle-free processing:- The entire application process of a personal loan is very quick and easy. You can easily get your loan processed within a few days. The application is usually verified within 2 to 5 business days. However, a lot of banks will approve your application instantly if you have a high/decent credit score. 

2) Unsecured:-  HDFC Personal Loan is an unsecured loan, so you don't have to pledge any type of asset/gold/property to get funds from this loan. Banks will easily disburse funds even if you don't have any assets under your name. 

3) Flexibility:- Customers have the complete flexibility to use the funds given through personal loans freely. So they can use the funds for various purposes like weddings, family vacation, debt consolidation, child's education fee, medical bills, miscellaneous expenses, etc. 

4) Documentation:- The entire documentation process of a personal loan is very quick and easy. You just have to submit the application form and some basic KYC documents to get your application verified.

Must Read:- Personal Loan no-cost EMI option